Farm Ireland

Friday 24 November 2017

date set for wexford sgm

Declan O'Brien

Declan O'Brien

Wexford Milk Producers (WMP) has confirmed that a special general meeting (SGM) will be held in conjunction with the co-op`s AGM on the evening of Thursday, February 13, in the Ferrycarrig Hotel, Wexford.

There are two motions for discussion at the SGM, a motion of no confidence in the board of WMP and a counter motion of confidence in the board.

The difficulties at WMP centre on the decision of the co-op to agree a purchase deal with Glanbia Ingredients Ireland Limited (GIIL) for Wexford Creamery, of which WMP is the controlling shareholder.

A significant number of Wexford suppliers are opposed to the Glanbia deal and are refusing to sign contracts that will see their milk go to GIIL. An offer by Northern liquid milk processor Strathroy to buy Wexford Creamery or take milk from WMP suppliers has further complicated matters.

A spokesman for WMP said 167 of the 318 Wexford milk suppliers had signed contracts so far, but three who had signed had sought their contracts back.

In a move which will be worth close to €50m to Glanbia suppliers, GIIL last week decided to drop its 2c/l expansion levy on all new milk from 2015.

A Glanbia spokeswoman said the move was a reflection of the greater `flexibility` GIIL possessed to react to developments in the market but she declined to comment on whether the decision was influenced by Strathroy`s hunt for suppliers in the southeast.

Meanwhile, a Dairygold spokesman insisted that the southern co-op had no plans to remove or reduce the levies it plans to charge on all new milk that comes on stream post 2015.

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