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Farmers comparing milk cheques with their neighbours should also compare the strategy of their processor, according to the new Glanbia group chair Martin Keane. Elected to the position last Friday, the Laois man replaces Henry Corbally.
“The language has changed dramatically in the last few years, in that other co-ops are saying we are supporting milk price through x, y and z. Glanbia is saying the same thing, but it is a slightly different model,” Keane told the Irish Farmers Journal.
“I think we should be measured by our investment policy, the amount of investment we are making, and I think we should be measured by our overall strategy and ambition for the business.”
The co-op received a dividend from its 31.5% shareholding in Glanbia Ireland of €12m to €13m this year, which is ring-fenced to support members, Keane pointed out, not to support GI – as some would see it.
“We have a job to help our members understand the flow of money. I think we are going to have to initiate a number of training and development programmes right across the representative structure.”
In the next stage of development, Glanbia is “going to have to make sure that we are not just getting bigger, we’ve got to make sure that we are adding value. Getting bigger without better is not enough”.
After the tough spring on farms, Keane says another member survey is needed to assess the direction of travel. “My gut feeling is that this spring was a shock to the system, but I don’t think that it will dent the ambition of our suppliers. The labour challenge is big.”
Keane, the outgoing ICOS president, farms at Errill, Co Laois, with his son, John. He says that having served on the Glanbia board since 2006 and as vice-chair since 2010, the time was right for him to take on the new role.
An unexpected election to many observers, the new Glanbia chair could be the last farmer to hold the position of the organisation’s three entities: Glanbia co-op, Glanbia Ireland and Glanbia plc.
“In the Glanbia situation to date it has been replicated across the three. That will change in the future as per our agreement with the plc post-2020, the position becomes open.”
Former chair Henry Corbally said he is honoured to have served over the last three years and wishes Keane every success in his role.
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