The milk supplying shareholders in Tipperary and Arrabawn Co-Ops both approved a merger today at two special general meetings. The historic votes, held in Nenagh and Tipperary and conducted independently by the Irish Co-operative Organisation Society (ICOS), saw the required 75% plus vote in favour of the merger.
The final vote was 94.4% of Tipperary Co-Op voters voting in favour and 94.8% of Arrabawn voters agreeing to the special resolution. Shareholders in Tipperary gave what is described as a “Cheer of Relief” when the Arrabawn result was announced. The meeting in Tipperary town is described as business-like and concluded in approximately 90 minutes. The merger will secure the milk pool for the new Co-Op and also help to secure employment in Tipperary town. The deal now goes to the Competition and Consumer Protection Commission for approval. It is expected that the new organisation will move immediately to look for efficiencies in operations and act to remove or reduce any duplication of activities. Farmers supplying milk are expecting to see an increase in price paid to primary producers for their milk.
The new merged dairy and agri-trading co-operative which will be owned and controlled by over 4,800 members, with more than 1,400 farmers supplying almost 750 million litres of milk annually. The co-op will have projected annual turnover exceeding €700 million.
The approval of the merger was welcomed by the chairs of the merging co-ops.
Chairman of Tipperary William Ryan said, “The overwhelming support to merge our neighbouring societies makes good business sense for Tipperary and Arrabawn milk suppliers. We will have a valuable product mix with streamlined processes which is key to maximising milk price return. The resultant new Society will have the scale, facilities and financial strength to meet the challenges of the changing dairy industry.”
Edward Carr, Chairman of Arrabawn and the new Arrabawn Tipperary Co-operative society said, “This is a historic day for dairying in one of the great dairying heartlands of our country. It’s, in particular, a great day for the members and suppliers of Arrabawn Tipperary Co-operative society who have come together to not just create a new force in dairy processing but to consolidate their own futures with this decision.”
