'Glanbia needs to broaden income strategy': IFA
Published 20/05/2015 | 02:30
The IFA has urged Glanbia Co-op to develop "more broadly-based and sustainable revenue streams" beyond the spinning out of Plc shares.
The farm organisation's comments follow last week's vote by Glanbia shareholders to spin-out €170m of the Glanbia Co-op's shareholding in the Glanbia Plc.
In addition, the co-op agreed to establish a €68m 'members support fund' through the sale of four million Glanbia plc shares. The move reduces the co-op's shareholding in the plc from 41.4pc to 36.5pc.
While IFA welcomed the strong shareholder endorsement for the spin-out, dairy committee chairman Sean O'Leary said Glanbia Co-op had to develop alternative income-generating options other than sale of its plc shares in order to support milk prices.
"While our members were positive on the Glanbia Co-op package of proposals, they were keen that GII would focus on optimising efficiencies in the future, and only resort to co-op top ups in crisis situations.
"This is as important for Glanbia suppliers as it is for all other dairy farmers, whose milk prices are not unaffected by Glanbia decisions," Mr O'Leary said.
"Our committee members were also adamant that Glanbia Co-op needed to broaden its income-generating strategy to provide long-term support for members, other than the option of selling off Plc shares," he added.