Kerry Co Op Shares

Ftm

We take it your a large co op share holder and that your goal is to get kerry liquidated . It serves your purpose . Excepted , and understandable .

Kerry were never going to go down that road unless they could re event themselves ,

this arrangement suits you and your likes and kerry .
understood ,

But stop sugar coating the fact. That it’s a very bad deal for , and listen to it A milk supplier ,

I am not talking about shares or share holders , they are on to their own path ,

But a milk supplier would be nuts to go for the Jv . And I forgot to mention the plc want a sale , because they want someone’s money to bank ,

So back to the guy milking the cows , like said earlier by a poster , the Lorrys will roll in for the milk , we don’t need stores , we don’t need mills ,there are 2 a penny now .

Yes point taken , the west kerry or west clare suppliers might be on a limb , but that s life ,

We need to reset ,

If the milk pool is not what this jv proposes to be ,because of leakage and other reasons of supply dip , then the pay back will be more painful ,

and if the profits of the jv are poor the pain will be passed back to the suppliers ,

so we need a plan B

And the farmers need their own private plan C

So guys wise up , each man for himself

how will you vote??

The thing is Kerry Cow - this is the crux of it. The co-op doesn’t belong to the milk suppliers. It belongs to the co-op shareholders. There is twice as many B shareholders as there is A shareholders and triple as many C shareholders as there is A shareholders.

If you want KerryCow I’ll have a bet with you. I’ll offer you odds of 2/1 - I’ll bet €2,000 and you bet €1,000. I’ll bet the JV will be voted for and you can bet against it. I’m putting my money where my mouth is.

Not many fellas will come out to vote down a tax free 85% spin out at a 6.25 ratio & a top up of 5.4c/L on their milk

The only people I know that are voting against this are those who sold most their shares and blew the money on bad investments.

C shareholders dont have a vote in this… Kamala Harris was supposed to be neck and neck with Trump and we see how that went… Co-op negotiators have already let farmers down by not demanding the leading milk price not be paid out before this is voted on..

as Kerry Cow says we dont need Kerry to process milk… i remember a couple years ago our milk in November December was being transported to Donegal… Ireland is small.. distance is not an issue for a processor

there’s no need to get on your high horse ,

I totally agree with you , that it will be passed because of the rewards for the share holders , and u am man enough to acknowledge you angle , but you fail to understand the bad deal it is for the milk supplier , and how this scheme really is the most important thing to you , to release you from the deep web of the 2 Kerry’s .

and using the milk suppliers as the key to unlock the riddle , share holders benifit , kerry co op board live on , kerry plc make a sale and the farmer puts a saddle on his back , getting ready for the ride

A shareholder -2604.....B shareholder -2973

you have 2 years to sell shares to buy land and avoid paying tax on shares… nothing new there

I never knew that...that's a great break

who can do this ,i always taught you paid 33% cgt on 31/12 the year of disposal

The question as regards a smaller milk pool. They’d be concentrating on the higher margin markets for what milk remains and they’d shut down 1 or 2 factories would be my humble opinion. An outsider or Tirlan or God only knows who could end up buying the final 30% that Kerry Group will be holding on to for a few years. The farmers don’t really need that final 30% if you think about it, we only need 51% to be in the drivers seat.

My own personal opinion is that some of us in this thread will live to see Ireland only having maybe 1 or 2 co-op’s and they’ll in effect process all the milk.

I’ve seen a few others comment about being worried about the Kerry Group management being in the drivers seat for this new JV - say what you want about those guys but they know how to run a business and make money. The difference is that this time around they’ll be making the money for us the farmers and not the PLC’s shareholders. Personally from the bottom of my heart I do think the new co-op will be a success.

If anyone wants to leave the co-op I think they definitely should go as well. Best of luck to them. Hope they do great, it’s a free country. The figures being reported in the farmers journal are totally pie in the sky about the producers group though. I find it insulting to my intelligence that the IFJ said there was a milk pool of 200m litres

Also for guys suggesting “why not sell on the grey market” - the co-op shares have been making €400 on the grey market for the last while, that’s a ratio of 4.3 - that’s an actual fact. With the spin out you’ll be getting 6.25 for 85% & 1 new share per co-op share as well. It’s an extraordinarily better deal.

Also for anyone saying the arbitration money should have been paid out before this vote…… that’s not the way a multi billion euro company is run. I’m not saying it’s morally right or wrong but it’s an unrealistic expectation for a multi billion euro company to hand us over €50m without it being tied into the vote. If I was working for Kerry Group there’s absolutely no way on Earth that I’d pay out that €50m either without it being tied into the vote. I know it’s for milk that we’ve already produced etc etc but if they paid out that money and if the vote then failed they’d have to issue a profit warning, they’d crash the share price, those responsible for would lose their jobs and literally become unemployable in the entire industry overnight…

Spin Spin ……..

Thanks Edmund!!

Are you paid by the PLC or the Co-op

They are getting control of 85% of there share holding and there remaining equity is in another venture. If they vote no its back to the scratcher, the next deal may be worse it's unlikely to be better. Yes B shareholders could vote it down, just like A shareholders can vote down any 100% dispersal or evenntge present deal because there is not enough equity going into tge purchase of Kerry Daries.

GHowever A bird in the hand is worth two in the bush

What’s the spinning part Cute George? This is categorically a better deal than paying income tax or CGT up front. That part is literally undeniable but I’d love to hear you try debate that point with me.

For ballpark figures the dairy business is making about €70m/year - I’m sure someone has the right figure but that’s it within ten million AFAIK

If any of us are ever going to get the now infamous “leading milk price” then this is the only way to do it. Rome wasn’t built in a day but this will put us on the right path.

As for the new co-op share… let’s say for simplicity the new co op is called “Pepsi-co-op”

So for round figures let’s say you’ve 100 co-op shares today

You’ll get 85% spun out at 6.25 which is 531 Kerry Group PLC shares & in exchange for each 1 of your old kerry co op shares you’ll get 1 new “pepsi-co-op” share

The dairy business is being sold for roughly 7 times the profit it makes annually

For context kerry group shares are trading around 23 times its annual profits

So the dairy business is good value versus the rest of kerry group anyway

A question I’d like to ask any of you is - what do any of you think is the way forward? Is it that some of you wish to leave the shares there just indefinitely? 😂😂

Where is the milk supply going to go. Yes some farmers may not sign new contracts and switch to Arrabawn, Dairygold or North Cork Co-op. Will they take 50% In theory selling milk monthly is grand in theory you will win when milk price is strong or in short supply, but in June and July a year where there is plentiful supply and low demand you could be spreading it on your grazing ground as no co-op will have an obligation to take your milk. Can these co-op handle the bones of 200 million extra litres of milk each. Will there other co-op members want the new suppliers and the risk it might add to there business

Tirlain alone could take in 500 million litres of milk extra with zero capacity issues, tipp Co-op have spare capacity to process circa 200 million litres, dairygold easily another 300 million...

Dairy cow numbers are declining, older farmers are pulling the pin especially concerning kerrys supply-base which is the oldest in the country, tb is cleaning out Dairy herds nationally, 70% of the 50,000 reactors removed this year where Dairy stock, another fun fact theirs going to be circa 50k less heifers calving down in 2026 than this year, derogation in all likelihood gone in 2026 will knock another couple of % of national supply...

Co-ops will be fighting for milk going forward,in Australia all milk contracts are 12 months with them renewed annually, farmer simply picks the best paying processor each year in their area, it's a tall tale given the sheer redundancy in stainless steel ireland has for processing milk that you reckon lads would have to end up dumping it ffs