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Kerry Co Op Shares

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This discussion was created from comments split from: Dairy Chitchat 4, an udder new thread..

HERE IS YOUR LOCAL AREA FORECAST:

EXPECT HEAVY MODERATING WITH LITTLE CHANCE OF MERCY IN THIS THREAD.

Warnings will rapidly give way to bans as time progresses, although the possibility of heavier outbursts can not be ruled out.

Take care out there.

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kerry cow

they won’t be taking my shares as I transferred to plc shares a few years back , because I saw this coming .
and I am not jealous of any one having millions , not at all ,

Share holders of co op share have their own agenda and understandable ,

But

I am looking at this as a milk supplier and equally , it should be understandable , that it does not stack up as a viable business investment for me , and many other milk suppliers once the real numbers are crunched .

if dry share holders pass the motion , then the spin will happen , but for the milk suppliers who support it , I hope they realise what the consequences of not fielding a full team will be if other buyers trucks roll in to neighbour hoods hooving up milk kerry thought they had to float this jv

paper never refuses ink ,

And I know for a fact , theirs a big milk pool ,a stones throw from one of the milk plants , that may go else where .

These farms will not support this , and will vote with the feet

cap.in.hand.

https://www.boards.ie/discussion/comment/122830022#Comment_122830022

Your all for being a Kerry plc shareholder....Kerry coop milk processing ltd will be a very important cog for Kerry plc as part of their ongoing success...you seem to want your bread buttered on both sides!!!

awaywithyou

https://www.boards.ie/discussion/comment/122830109#Comment_122830109

WWhat Are you on about? See post above about establishing a fund Once 1st part of transaction is complete... farmers should have in their bank accounts what's owed on leading price issue before any vote

cap.in.hand.

https://www.boards.ie/discussion/comment/122830202#Comment_122830202

According to agriland ,a payment is forthcoming

awaywithyou

how much of a majority is required for this to pass… will it be 75% like Arrabawn and Tipperary last week?

ftm2023

There’s a payment coming… 5.4c/L

For starters any milk in the forward price schemes isn’t being paid out on. When you sign up to those scheme you forego any future top up payments

So as an example let’s say:

You’d a milk quota of 100,000 gallons

If you supplied 120,000 gallons in a given year you’d be paid the top up for every drop of milk

Let’s say thought you supplied 300,000 gallons of milk

You’d still only be getting paid the top up on 120% of whatever your quota was (in this case we’re gonna say the persons quota was 100,000 gallons)

So basically anyone that expanded a lot post quotas or tied themselves into the fixed price scheme is gonna lose out

awaywithyou

https://www.boards.ie/discussion/comment/122830331#Comment_122830331

we are owed 7.39c… 5.4 falls far short.. whats the majority required to pass? i would assume it requires 2/3..?

cap.in.hand.

Kerry plc price up €3.85 today... markets seem pleased anyway

ginger22

https://www.boards.ie/discussion/comment/122830363#Comment_122830363

From reading Agriland it would appear that the 50 million fund would only materialise if the deal goes ahead, So we may be waiting or indeed never get our hands on it depending on if the deal goes ahead.

ginger22

https://www.boards.ie/discussion/comment/122830387#Comment_122830387

The other thing is it would appear that the 50 million is to sort out the arbitration, but there are several more years of underpayment after that.

awaywithyou

https://www.boards.ie/discussion/comment/122830387#Comment_122830387

Are the lads that negotiated this agreement really that stupid? that they wouldnt look for arbitration to be finalised before a vote?? ARE THEY REALLY THAT STUPID..??

straight

https://www.boards.ie/discussion/comment/122830331#Comment_122830331

I've been supplying 120000 gallons per year for the past 8 years and I have no quota. I don't see what quota has to do with it. I've still been underpaid for my milk that I supplied in good faith and fulfilled all sides of my contract.

cowman10

what does this mean for those of us with no shares and are just plain ol milk suppliers? Will we be paying for this out of our milk cheque? I will consider moving if so as the price I’m being paid is poor enough as it is. What do I gain from this if I have no shares. Can someone explain in simpler terms for an ol dope like me!!

straight

https://www.boards.ie/discussion/comment/122830416#Comment_122830416

Hardly surprising that they would take the farmers for granted.

straight

https://www.boards.ie/discussion/comment/122830454#Comment_122830454

Phuck all only a big bill probably

ginger22

https://www.boards.ie/discussion/comment/122830454#Comment_122830454

You will be paying 3 cents a litre for the next 5 years. And no sign of a new milk contract yet. God only knows what terms and conditions they will come up with.

cap.in.hand.

https://www.boards.ie/discussion/comment/122830454#Comment_122830454

I presume all milk suppliers will automatically become shareholders in the new Kerry coop that will have a substantial asset valuation and turnover.

cute geoge

What I would be seriously indread of is pension deficit and wages of current kerry agri employees .The wages of ordinary employees is eye watering and gone out of hand. Kerry agri while screewing dairy farmers reward themselves handsomely

ftm2023

I’m a bit confused for people with 1 share or no shares asking “what about me?”… what can anyone with no shares or 1 share expect? You’ll be getting part of the €50 million milk price top up payment…

You’d see some fellas driving brand new €50K jeeps and they’d stand in front of you then with the new jeep beside them and tell you that they can’t afford to pay 1c per litre per year. People need to get their priorities straight

When Kerry started off in the early 1970’s it was Denis Brosnan in a caravan in a muddy field. With this JV the facts of the matter is the current co-op shareholders are putting a quarter of a billion euro towards the JV

If we’re half as good as our forefathers from the 1970’s I reckon we’ll do alright with the new JV

Ps. For the guy who said he’s producing milk now but had no quota previously, you’ll be fine. Your quota will be taken as your first years milk AFAIK

straight

https://www.boards.ie/discussion/comment/122830871#Comment_122830871

Farmers were well paid for their product in the 70's. Big difference to now. Lads are asking why should they support this for no reward.

Castlekeeper

https://search.app?link=https%3A%2F%2Fwww.agriland.ie%2Ffarming-news%2Fkerry-group-and-kerry-co-op-agree-proposed-dairy-joint-venture%2F&utm_campaign=aga&utm_source=agsadl2%2Csh%2Fx%2Fgs%2Fm2%2F4

Bass Reeves

Looks to be as good a deal as will be got. B shareholders will vote in mass for it if the⁹y have any sense as Will any A shareholders with a 100 or more co-op shares. A shareholders will 200 co-op share is looking at nearly 100k being transferred totally to there control.

The top up on milk agreement will mean a lad milking 100 cows provided he has not expanded significantly will see a cheque for 25k+ and he will will be forking out about 5k/ year for the new venture. Kerry group is only getting about 60% of the last deal. They say farmers always drive a hard bargain when they have control.

Kerry Group are insisting on a 5% dividend on the remaining share/value they have in the dairy side. In 2023 Kerry Daries EBITA was 53.4 million but in 2022 it was 70 million. It was sold for 10 time EBITA.

Not Sure how the figures relate to Tirlan. 200ish million of the funding will come from Kerry Co-Op shareholders. Leaving 150 million to be paid for by farmers before the second tranche has to be bought out in 2030. On paper it look OK anyway

ginger22

https://www.boards.ie/discussion/comment/122831115#Comment_122831115

You could knock 10 million a year off that EBITA for the leading milk price they didn't pay.

kerry cow

there is enough processing capacity without kerry farmers buying stainless steel ,

I don’t need to own the market where I sell my stock ,

Nor do I need to own the milk processing facilities that buy my milk

We don’t need to own the stores that sell over the price goods ,

this is 2025

Time moves on

and if the boys and girls on here , who want their shares converted , could get them liquidated as they have been requesting for years , then they would have no interest , high up or low down what happens to the kerry processing , because they would shop around to sell their product where the be return is .

That’s the truth

But because it has become a complex web of spin , it’s everyone for their own agenda ,

And the shares holders want the exit ,

Doesn’t matter about the milk supplier ,

but it’s in kerry plc interest to have a buyer ,

Why wouldn’t it ,

And what kind of clowns would agree to

1 . not getting pay on all milk produced , farmers have worked hard enough to milk them cows that kerry profited on that milk ,

2 . Every body gets paid before any vote ,

Typical carry on again , put hands on steering wheel

And take off the blind fold please .

ginger22

https://www.boards.ie/discussion/comment/122831399#Comment_122831399

Now its all fine and good to say "you don,t need to own the business that buys your milk" but the thing is as a milk supplier you are buying the assets at a discount because Kerry CoOp shareholders are stumping up a large proportion of the purchase price without getting ownership of any of the asset.

It is like for instance you are buying an investment property but you neighbour gives you some of the money to buy it without any strings attached.

Then you can argue if the business is worth what is being paid for it. I don't know. That is above my pay grade.

kerryjack

So the 15 % haircut will be given out in shares for this new company and we will all own shares in this new company A,B and C

kerry cow

I don’t like the fact that not all milk supplied in 2015 to 2020 is not be topped up ,

The cows were milked ,

It’s bullshit and small change in the scheme of things but it the principle of it , and if we owed kerry they lob interest on us ,

cap.in.hand.

https://www.boards.ie/discussion/comment/122832125#Comment_122832125

No...look like milk suppliers supplying milk to new coop only... reading the latest agriland article it does look like current ABC shareholders will still be shareholders in new company......

cowman10

https://www.boards.ie/discussion/comment/122830583#Comment_122830583

That’s not too much good to me. I’ll probably jump ship

kerryjack

https://www.boards.ie/discussion/comment/122832155#Comment_122832155

Ya reading that agriland article it said all share holders are going to be treated equally