Dairygold open for merger talks as turnover nears €1bn
Cork-based co-op says it's open to alliances that will benefit members, and warns of need for transition period as Brexit looms
Dairygold is open for merger talks with fellow co-ops as the dairy industry braces for the impact of Brexit.
CEO Jim Woulfe told the Irish Independent that the company is "always open to change".
"We're open constantly to reshaping, reforming if there's betterment for our members," he said adding that Dairygold had come about from the merger of Mitchelstown and Ballyclough co-ops three decades ago.
"When we can take out costs, we'll take out costs and we'll collaborate with whoever to take out costs ... we don't have a closed mind."
Chairman John O'Gorman said Dairygold had "never made a secret that we were open to collaboration in whatever shape or form that would take".
Dairygold also said Brexit uncertainty was overshadowing the market. About 13pc of the company's revenue comes from the UK.
"No level of planning could insulate any EU organisation, trading with or through the UK, against the implications and consequences of a hard or no-deal Brexit.
"That is why it is critical, no matter what the final outcome of the negotiations, that there is a sufficient transition period, to fully prepare for the future trading relationship between the EU and UK. Even then, the Dairy Industry will suffer serious consequences in the event significant tariffs applying," Dairygold said.