As talks continue between Arrabawn and Tipperary Co-Op about a possible merger a former Teagasc Director says the deal is a good option for both co-ops. Professor Gerry Boyle who is also a non-executive director at Arrabawn sees benefits for the co-ops themselves, for suppliers and for customers.
By merging the new entity would have a greater product diversity and as well as becoming more sustainable in the long-term. The combined milk pool could allow both co-ops to make more efficient use of their milk processing capacity. Tipperary Co-Op invested €10M in a new dryer plant in 2022 part of a wider capital investment of €59.8 M between 2018 and 2022. Professor Boyle says the ability to produce casein from milk which is in great demand will enable the new Co-Op to pay suppliers a top price for their milk as it also fulfills contracts for butter, skim milk and cheese alongside other products. As the two Co-Ops are geographic neighbours Mr Boyle says cost savings can be made in the value chain across raw materials, transport and production.
It is understood that the talks are ongoing with a target date of December 8th to have a proposal to put to all stakeholders.
