Letter: questions remain for Kerry Co-op board

DEAR SIR:

In his interview in the Irish Farmers Journal (22 July), Thomas Hunter McGowan said the co-op board believes that in order to be relevant they have decided to become a trading co-op with milk processing facilities. The co-op board intends to fund this by selling our shares, using our investment without consulting us, taking shareholders’ funds for their own vanity project.

We do not support this. Kerry group has made it clear that its processing facilities are not for sale. Our milk suppliers have a long-term contract to supply Kerry group. This contract provides long-term security of tenure combined with a commitment to process all the milk farmers will produce without any cost for stainless steel. In addition, we have a milk price commitment – while it is less than perfect, it is, we believe, more than the co-op board can offer in their dream to be a major milk processor.

Where will they buy the milk processing facilities? They say they have identified facilities that they are interested in. Who will supply milk to the co-op given that farmers have a long-term contract with Kerry?

The co-op board say they are prepared to build processing facilities if they cannot purchase them, but who will supply the milk? With the weather we have had for the past year, there is enough capacity in the country. What budget has the co-op board for this venture?

What proportion of our assets are they prepared to spend – 10%, 50%, or all of it? What milk price will the co-op be able to pay producing basic commodities, the leading price?