Aaron Forde and Nick Whelan were fast out of the traps announcing the interest of Aurivo and Dale Farm respectively in LacPatrick. It’s evident that both believe the personal touch is required to win over LacPatrick suppliers.
Those suppliers must vote approval on any merger proposal. But also, with no lengthy milk supply agreement in place at LacPatrick, they can simply up sticks and move their milk to another co-op.
Forde is well regarded by farmers and also by peers in processing. He will put this goodwill to use with LacPatrick members over coming weeks.
Dale Farm chief executive Nick Whelan is not as well known to farmers, having taken up this role in 2016. He would have learned lessons from Glanbia’s purchase of Wexford Creamery from Wexford Milk Producers (WMP) in 2014, as he was in Glanbia at the time, having come there from Kerry.
Keen to do deal
Lakeland Dairies boss Michael Hanley is keen on doing a deal. He was one of the first to hear of developments in LacPatrick. After LacPatrick cut milk price in mid-April, I heard that over 20 suppliers immediately contacted Lakeland requesting a move. Hanley was alerted by his farmer relations team.
Following LacPatrick’s emergency meeting on Tuesday, 17 April, Hanley called an urgent meeting of his own board for the following morning. He asked for authority to contact LacPatrick with an expression of interest and was given this.
But Hanley is keeping his cards close to his chest. He has not issued any statement confirming Lakeland’s interest in LacPatrick.
He is a tough negotiator and is comfortable dealing with farmers. He learned his trade on the ground running the milk quota section of Lakeland for many years before moving up into the big leather chair.
No comment
Glanbia has made no comment on LacPatrick. If it is seriously interested, then Glanbia Ireland chief Jim Bergin will be closely involved. He oversaw the purchase of Wexford Creamery. His intervention at the crucial shareholders meeting was seen as a decisive factor in the final outcome.
About one in five Wexford suppliers defected to Strathroy at that time, so Bergin will be acutely aware of the potential for the loss of LacPatrick suppliers.