Glanbias new joint venture

milkprofit

are u all happy with the proposed debt level of the new joint venture which those expanding will have to pay out of the Lt:mad:. of milk

whelan1

as negotiations are on going i will refrain from posting on anything to do with the new deal:o

FarmerWatch

whelan1 wrote: »

as negotiations are on going i will refrain from posting on anything to do with the new deal:o

I'm a little confused, isn't this exactly the time to discuss it? Surely when negotiations are through then all we'll be able to do is complain if we don't like the terms but by then it's too late right?

whelan1

FarmerWatch wrote: »

I'm a little confused, isn't this exactly the time to discuss it? Surely when negotiations are through then all we'll be able to do is complain if we don't like the terms but by then it's too late right?

the fact our newly elected members are actually negotiating it and not just accepting it is alot better than last time imo

milkprofit

WHELAN 1 Y BOARDER MEMBER HAS ACCEPTED
what A DISAPPOINTMENT
i HEAR SOME SHARE HOLDERS ARE LOOKING FOR A special general meeting to discuss the financial before it is too late
If new joint venture is carrying a lot off debt there will only be one result:mad::mad::eek: Farmer pays

freedominacup

Anyone else see this today. I was hcecking the website for another story earlier on and this popped up.

http://www.independent.ie/business/irish/glanbias-farmer-shareholders-have-a-week-to-accept-deal-3208243.html

To say the least of it I would be totally opposed to this venture or any other that reduces our shareholding in general. But specifically in this case I find nothing to recommend it. We are told "we have the markets" probably but I'll take a good bit of convincing that these markets are not Glanbia plc on the nutritionals end. They want us to sign contract this autumn for three years time when their normal contract in the U.S. is a three month one.

In the short term we'd be better off imposing the 2c/l penalty on ourselves through producing more milk away from the May/June period. Maybe even some Autumn calving. 2c/l on a 1400gal/6400l cow buys you an extra 425kgs of meal but the beauty is your not stuck with it, poor milk price=less meal= less milk and some hope that scarcity will help prices. Imagine another 2009 terrible weather price heading down to 20c/l and you have to do the equation between buying meal to avoid the penalty or taking the penalty and loosing another couple of cent/l.

In the short term these drying plants are a clusterf**k wrapped up in a nuclear meltdown for us. There's no upside other than as the 5/8's board member said at the Dungarvan meeting that "you should support the plant if you like milking cows". This apparently passes for joined up thinking within the Glanbia co-op board.

Michael Flynn Agricultural Commentator

Glanbia vote on the 28th November must be rejected by farmers.



I welcome the recent Yes Glanbia vote which caters for expansion in farming and will have a spin off in employment. The Glanbia vote on Wednesday the 28th November holds many dangers for farmers. We must learn from the Kerry group experience where they haven’t given a commitment to invest money into expansion for their farmers and are paying poorer milk price than us because it is an investor led company. What effect will this have on their children and their grandchildren’s future in farming? Milk price is vital to all us farmers as a 2 cent a litre cut in milk price to a 100,000 gallon producer would mean a cut of over €9,092 in our milk cheque. One cent increase in milk price is equal to 20 million to farming. Now I ask you? Who will an investor controlled entity pass that increase on too? Farmers. I think not. You must ask yourself these questions. Would you sell a 59% stake in your own farm? Remember what investors have done to our country during the Celtic tiger and they could do the same to our Co-op if they get control which many of our fore fathers set up for the benefits of us farmers.

It is only a farmer controlled PLC that will deliver for farmers. An investor controlled PLC will only deliver for investors firstly. As an Analyst John Mullane at Dolmen Stockbrokers is quoted as saying recently that the sale of the stake by the co-op members would be beneficial to investors. Proof of the gain’s to be made by investors outside of farming if this vote was passed. I estimate that there could well in excess of €200 million go to institutional investors and out of control of farmers.

If you are like me and want to see your son/daughter and your grandson/daughter farm while maximising the returns coming back to us farmers by way of higher milk price, dividend growth and asset value you must then reject this vote and send a clear message to the board that our majority shareholding in the phenomenal growth that we have seen which is the PLC isn’t for sale. Not now. Not ever.

Michael Flynn Agricultural Commentator

The new joint venture was sold to us as a stand alone by management and didn't need the second or third vote to succeed. So they were happy with it.

South wind

Michael Flynn Agricultural Commentator wrote: »

The new joint venture was sold to us as a stand alone by management and didn't need the second or third vote to succeed. So they were happy with it.

Watch this space coop has broken rule 6 the first vote is up in the air. Who's keeping an eye on the rules of the coop on the farmers behalf , thought it was horan's job but looks like he is not capable. Saw top management of the coop and the plc entering hotel Friday , thought they were not colaberating !!!!!!. Where are we going looks like plc has robbed the farmers of there 3% on the first vote.....

Michael Flynn Agricultural Commentator

Heard that also: Glanbia voting process the black Clouds are arising over IT : In Saturday's independent page 22 at the bottom and page 39 of the business section. Also worrying to me the last day was when I asked to be allowed into the count center on behalf of the No camp. I was told I wasn't allowed in as people were already picked from the first vote to do the job. It doesn't sound right to me when one side is represented at the count center because I know of no body from the No side who was in there. If someone knows differently. Please tell me. There was also an interesting piece in the Phoenix magazine which isn't in favour of the deal also in this weeks issue.

mf240

Power corrupts absolute power corrupts absolutely

Showing farmers very little respect throughout this whole process.

Even the yes side must agree that democracy must be respected, surely the last thing any of us need is for something untoward to come to light in a year or two down the line.

whelan1

Michael Flynn Agricultural Commentator wrote: »

Heard that also: Glanbia voting process the black Clouds are arising over IT : In Saturday's independent page 22 at the bottom and page 39 of the business section. Also worrying to me the last day was when I asked to be allowed into the count center on behalf of the No camp. I was told I wasn't allowed in as people were already picked from the first vote to do the job. It doesn't sound right to me when one side is represented at the count center because I know of no body from the No side who was in there. If someone knows differently. Please tell me. There was also an interesting piece in the Phoenix magazine which isn't in favour of the deal also in this weeks issue.

check out the other glanbia thread here. over 40 pages of replies

South wind

Michael Flynn Agricultural Commentator wrote: »

Heard that also: Glanbia voting process the black Clouds are arising over IT : In Saturday's independent page 22 at the bottom and page 39 of the business section. Also worrying to me the last day was when I asked to be allowed into the count center on behalf of the No camp. I was told I wasn't allowed in as people were already picked from the first vote to do the job. It doesn't sound right to me when one side is represented at the count center because I know of no body from the No side who was in there. If someone knows differently. Please tell me. There was also an interesting piece in the Phoenix magazine which isn't in favour of the deal also in this weeks issue.

O'toole of the farmers journal and o'brien's knew of a count discrepancy last Monday evening but both were not allowed or did not publish it . Democracy and freedom of press! I was talking to a scrutaneer on Tuesday evening and he saw no problem with the count (30 votes too many) what's the message there. When there is a smell of s...t there is only one thing it is ......

Michael Flynn Agricultural Commentator

So the GII would have debt. We all have debt which doesn't make up complacent when running a business. The Phoenix magazine article said we bought 60% of this joint venture when we already owned 54% of the PLC. So in fact we only needed to purchase the 6% we didn't own. Interesting point?

mf240

Michael Flynn Agricultural Commentator wrote: »

So the GII would have debt. We all have debt which doesn't make up complacent when running a business. The Phoenix magazine article said we bought 60% of this joint venture when we already owned 54% of the PLC. So in fact we only needed to purchase the 6% we didn't own. Interesting point?

A point I made weeks ago on the other thread,
Dont forget we also owned 54% of the plc (and 54% of the profitable bits)

South wind

Vote might not be on Wednesday due to breaking of rule 6, management s...ting it .....

whelan1

how many days has to be between initial vote and second vote?

freedominacup

Skin and hair flying @ Waterford IFA on Friday night. Guys turned up with 40+ copies of the pheonix article. Last time it wad raised there wasn't a whimper. A lot of people have become very exercised about voting irregularities and what they see as the IFA just rolling over.

Turns out there might be a reason for biased coverage in the farming press beyond the usual ad revenues, the bould J Maloney was appointed to the board of the comic 6 months ago. No influence on editorial direction of course:rolleyes:.

mf240

Was thinking at the last vote that the IFA were almost too much in favour of it iykwim

How much would all the levies that glanbia collect for them out of our milk cheques amount to?

freedominacup

mf240 wrote: »

Was thinking at the last vote that the IFA were almost too much in favour of it iykwim

How much would all the levies that glanbia collect for them out of our milk cheques amount to?

You find me the union rep that gives a half a f**k who collects their subs if their members interests are being compromised. That's a handy cop out for IFA supporters "their hand is in the dogs mouth" in mehole like:mad: