IFA President John Bryan haas welcomed the decision made by Glanbia shareholders and milk suppliers to support the resolution to sell and spin out further Plc shares.
He said the positive vote will strengthen the financial outlook of the new Joint Venture, eliminate the debt of the Co-op, and would allow all shareholders benefit from a share spin out worth in excess of â‚¬150m.
â€œI believe this decision by Glanbia shareholders will considerably strengthen the financial outlook of the new GII. It will also strengthen the Plc by allowing it to focus on lucrative international nutrition markets, benefiting the Co-op which retains a sizeable 41% dividend earning and controlling share.â€
IFA National Dairy Chairman Kevin Kiersey, who also strongly supported a â€˜yesâ€™ vote, said: â€œThe formation of GII represents a significant development for Glanbia farmers. However, it is only a first step, and it should be built upon to increase industry collaboration as we move towards 2015. I urge GII, and other processors, especially neighbouring co-ops, to engage fully in detailed planning to foster greater efficiencies and integration for the benefit of the entire sector, and milk prices to producers.â€
Macra na Feirmeâ€™s national president, Alan Jagoe, has joined in welcoming the â€˜yesâ€™ vote. â€œMacra views this proposal as a tremendous opportunity for young farmers as it paves the way for growth post quota by providing the processing capacity for a potential 60% expansion of milk supply up to 2020.â€
Mr. Jagoe added: â€œYoung dairy farmers are enthusiastic about the future as we know we can produce quality milk in a sustainable manner as cost effectively as anyone. Once quotas go in 2015, we can grow our businesses. The Irish dairy industry needs to be prepared for this growth and Glanbiaâ€™s proposal, which includes the development of a â‚¬180m state of the art processing facility in the South East, will be essential to capitalising on this growth.â€
He said farmers and their processors must work closer together to build world class dairy businesses delivering strong milk prices to farmers while being highly competitive in global markets.