Having assessed the value of both co-ops, there is a 70:30 split in favour of Dale Farm shareholders in the proposed merger with Aurivo.

Information presented to Aurivo shareholders at meetings held between Monday and Wednesday puts the revenue from consumer foods and dairy ingredients within the Dale Farm business at nearly €730m, compared to just under €450m at Aurivo.

Both co-ops also have turnover from agribusiness, with United Feeds generating over €100m within Dale Farm, while Aurivo has interests in feed, shops and operates four marts across the west of Ireland. Collectively, those Aurivo businesses bring in revenue of nearly €280m.

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In recent years, Dale Farm has reported operating profit margins of over 5%, which is more than double most of its competitors. It also has a milk pool of around 1bn litres, compared to just over 500m litres at Aurivo.

It would mean around 1,250 Dale Farm members hold 70% of the value of the new entity

Taking everything together, the message at the meetings is that the split is “fair to both parties”.

It would mean around 1,250 Dale Farm members hold 70% of the value of the new entity, with around 7,000 Aurivo shareholders having the remaining 30% share.

That split would leave 10 Dale Farm directors on a new board, along with five from Aurivo.

As well as the chairman, there will be two vice chairs, one of which will come from the Aurivo side of the business. The board will meet in both Sligo and Belfast, with the business led by Dale Farm CEO Nick Whelan and known as Aurivo Dale Farm co-op.

Concerns

However, while the feedback from initial meetings is broadly positive, there has been dissenting voices.

Concerns have been raised about the importance of the marts business in the merged co-op, the future for liquid milk suppliers and the fact that the new business will be headquartered in Belfast, outside of the Irish State.

Ultimately taxes will be paid in whichever jurisdiction profits are generated

It is understood that management of both co-ops have committed to retaining a diverse mix of businesses and have given assurances around maintaining a spring calving model and bonuses for liquid milk. Ultimately taxes will be paid in whichever jurisdiction profits are generated.

The main selling point put across at meetings is that consolidating the co-ops will bring significant growth opportunities and efficiencies.

The next step in the process is five producer meetings across NI for Dale Farm members, to take place later this month.

Having taken on feedback, if the decision is taken to proceed, the next stage is a formal due diligence process ahead of a vote, potentially in September.

At least 75% of shareholders in both co-ops must vote in favour, while the deal will also be subject to approval from competition authorities in Ireland and the UK.