Tipperary Co-Op is now involved in preliminary exclusive talks with Arrabawn Co-Op headquartered in Nenagh regarding possible integration of their operations, including potential amalgamation.
Tipperary Co-op has been paying the lowest milk prices of all Co-Operatives in recent months and due to extensive borrowings is in a difficult financial position as interest rates went through a period of sharp increase.
Energy costs for 2022 were €15.5M – double that of 2021. Tipperary Co-Op did agree a three-year deal in August 2023 for it’s repayment schedule to give stability to it’s budget.
The neighbouring Co-Ops are now in exploratory talks with a view to creating a stronger entity within the Irish dairy industry. The milk pool of both would place a combined entity in the top four co-op processors in Ireland.
Any change in structure would be subject to due diligence and require approval of the board of directors and ultimately the milk suppliers of both co-ops, as well as regulatory approvals.
A statement issued earlier today on behalf of both Co-Ops clarifies that movement to a merger would only be considered if it would “enhance the return for milk suppliers, members, employees, and customers, while at the same time maintaining the co-ops’ commitment to delivering the highest quality product and sustainable development of the Irish dairy industry.”
Both Co-Operative societies will continue to operate their businesses as usual while the talks are ongoing.
Tipperary Co-Op had 205 employees as per the 2022 Annual report although there have been some redundancies since then including as recently as last week when 4 staff are reported to have taken a deal on offer.
The 2022 Annual Report reveals a group Profit of €6.8 M. Tipperary Co-Op’s Advisory Board, made up of over 80 farmers including milk suppliers and shareholders met last night in the Great National Ballykisteen Hotel to consider latest financial information and the options available to secure the future of the organisation.
