DEAR EDITOR

I note that Tipperary Co-op has recently published its eagerly awaited accounts for 2023. As widely suspected, they make for very poor reading.

As is the norm on occasions such as this, the “spin” is that “it is expected that they will return to profitability in 2025”.

If this was the case, why would Tipperary be so anxious to merge with Arrabawn?

All the usual punchlines about securing supply, etc, will be trotted out to justify consolidation.

Arrabawn can be proud of paying a good price for the last while and, to my mind, merging with such a debt-laden entity as Tipperary at this time of change makes absolutely no financial sense in light of the inevitable loss of the derogation, despite political spin.

Everyone knows that the writing is on the wall, despite us all wishing it wasn’t.

In in my opinion, both co-ops need to stress test their existing supply in case the level was reduced to 170, by finding out from its suppliers what their derogation situation is and what their intentions are regarding continuing to milk cows over the next five years.

As both co-ops probably contain a large number of derogation suppliers, the reduction to 170 would severely impact on supply and therefore profitability.

Taking on further debt would severely impact on Arrabawn’s ability to maintain a good milk price.

I note that Tirlán is also interested in Tipperary’s suppliers.

Another option would be for Arrabawn and Tirlán to canvass suppliers to transfer and let Tipperary either paddle its own canoe or fold.