Herlihy backs dairy revamp
Published 16/03/2010 | 05:00
Liam Herlihy has delivered a clear signal that Glanbia Co-op would be active participants in the restructuring of the dairy industry should the plan to acquire Glanbia's Irish businesses get the green light.
The co-op chairman said that while the first priority of the co-op would be to get "their own house in order" should their buyout plan succeed, he added that growth through amalgamation would be considered.
"No industry can stand still and there is room for further consolidation and integration at the processing and marketing ends of the Irish dairy sector," Mr Herlihy said.
"I believe the co-op model lends itself to participation in that arena, should a suitable opportunity arise," he added.
There have been suggestions that a successful buyout of Glanbia's Irish businesses by the co-op would give fresh impetus to moves to drive restructuring in the industry.
There has been some talk of a tie-up between Glanbia and Dairygold as the two businesses already have an ongoing operating relationship.
While Dairygold officials have been slow to comment on the issue, the general view in the industry is that such a move would be far simpler if it was a case of co-op dealing with co-op.
There have already been moves towards dairy restructuring this year, with Kerry making a pitch for Newmarket and Arrabawn and Kerry entering talks on the latter's liquid milk business in Galway.