The proposal, as reported by industry observers, involves purchasing Kerry Dairy Ireland, a prominent consumer foods and ingredients business, while providing shareholders with an opportunity to unlock substantial financial gains.
According to Kerry Co-op, the deal will also allow its 11,906 shareholders to liquidate their shares, collectively valued at €1.4 billion.
Historically, trading shares within the co-op relied on unofficial “grey markets” or limited redemption schemes.
If approved, the deal will enable farmers and other shareholders to exchange their co-op shares for Kerry Group shares, thereby accessing broader market opportunities for liquidity.
The financial injection, anticipated to commence by January, is expected to have profound economic impacts across Munster, where Kerry Group’s dairy operations are deeply rooted.
Kerry Dairy Ireland, at the center of the proposal, processes over 1.1 billion liters of milk annually from 2,740 family farms and boasts revenues of €1.3 billion as of last year.
Its expansive operations include six manufacturing facilities across Ireland and the UK, producing well-known dairy brands such as Dairygold, Cheestrings, and Kerrymaid.
Industry stakeholders have expressed both optimism and concern ahead of the pivotal vote.
Former Kerry Group Chief Executive Denis Brosnan, credited with spearheading the early success of both Kerry Co-op and Kerry Group, has described the proposal as “the deal of the century.”
Speaking to the Irish Farmers Journal, Mr. Brosnan emphasized the unparalleled financial opportunities the deal offers to farmers and shareholders alike. “It’s win, win, win for everybody,” he asserted, highlighting the broader release of wealth into the community.
Supporters argue that securing ownership of Kerry Dairy Ireland ensures long-term stability for the co-op and its farming base.
Eoghan McCarthy, a dairy farmer from Co Kerry, believes the transaction guarantees a sustainable future for the next generation. “For younger farmers in the area, it’s giving them security and a future,” he stated.
However, opposition persists, with critics questioning the €500 million price tag and its financial implications for milk suppliers.
James Doyle, former Kerry Co-op Chairman and a key representative of Munster’s dairy producers, has voiced concerns about the deal’s affordability.
Mr. Doyle contends that the burden of financing the buyback will be unsustainable for farmers, particularly those reliant on milk production as their primary income.
As reported by RTÉ News, shareholder meetings held across Munster have underscored both the widespread interest and the polarized opinions surrounding the deal.
The vote, which will take place in Killarney, requires a two-thirds majority to pass, setting a high bar for approval.
Should the deal be rejected, questions will inevitably arise about the future ownership and direction of Kerry Dairy Ireland, adding further weight to the outcome of the vote.
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