Kerry Co Op Shares

Dairygold might, but Dairygold deal mainly in milk powder at present they are trying to diversity away from that. It great when milk prices are high( like Polish and Dutch beef) but the floor falls out of it when there is a surplus. Tirlan to get the milk down to it plants would cost 5-8 cent/L in extra transport costs. Tipp would probably be 3-5c/ L. Maybe Co-ops will start fighting but I doubt it. Much more likely they will rationalise and merge.....like Arrabawn and Tipp. Within 10 years there will probably only be 2-4 Co-ops in the country and they will be geographically based.

Anyway tge highest paying co-ops are the West Cork ones I doubt if I would want to be dealing with Tirlan as they are masters of expecting you to buy there overpriced fertlizer and ration to give you a market price

What in a load of milk 28-30k litres. 3 hours extra return journey @ minimum 100 euro/ hour.

300 euro divided by 28000 is 10c/L. It's actually more than a 3 hour return journey from north Kerry

Can you not do basic maths? 28000 litres multiplied by 10 cents is 2,800 euro, taking your figures and actually allowing 600 extra a load versus delivering to a Kerry plant would add 2.15 cents a litre onto haulage but you'd have zero issues getting a haulier to do it sub 2 cent a litre

To the poster that said it was “a load of rubbish” that if Kerry paid out the €50m and then the vote failed that it would badly effect the share price… you’re really showing your lack of business acumen. I see my wife with her job, she knows to the penny what revenue & profits will be for each year between now and the end of the decade… and you think Kerry Group can make a €50m goodwill payment to us and have nothing in return and that won’t effect the share price?

A few of the posters on here remind me of “the big bad wolf” in the children story “The Three Little Pigs” - you can huff and puff like the big bad wolf but you won’t blow apart this JV - it’s going through

Much more is going to come to light at the shareholders meetings regarding the 5.4c/L and the arbitration. In a nutshell the co-op’s legal team has told the co-op they will not get any more money than that if they go back to arbitration and with the case the PLC will put forward they may get absolutely no money whatsoever in arbitration and that the co-op’s directors would be personally responsible and open to be sued if they turn down the 5.4c/L and ultimately lose at arbitration. I’m not a solicitor or a director but when any of you go to the information meetings you can have it out with the solicitors and senior counsel etc tell them that they’re wrong

There is a lot of emotional comment on here with the last while. Now nobody hates the PLC more than me who have been stealing from me for the past 10 years but we have to put all that aside and make rational decisions. There is no point in talking about "what if's", lads need to look to the future. The reality is the CoOp have been dealing with a ruthless shower and this is the only deal available. Dreaming about getting more money from arbitration is just that , dreaming. Without this present deal no arbitration would ever be paid out. The PLC have their mind made up they are getting out of milk processing one way or another. Apparently the food brands are worth 350 million on their own so we are getting the milk processing for 150 million. The Kerry milk pool is about 1 billion litres so @ 1 cent per litre over 5 years that is just 50 million contribution from suppliers. Doesn't sound like a bad deal to me.

Bear in mind also that the present management will be coming with the deal. While I may not like them personally I would have great confidence they they will run the business efficiently.

Anyway this deal is certain to get accepted by the majority. As to who you will be selling your milk to going forward, lads are always free to switch to another processor.

Finally I am willing to take some pain to get away from the present shower.

Excellent post Ginger22. Genuinely agree thoroughly with you. People are behaving emotionally and saying irrational things. I think a lot of people on here need to take a deep breath and look at the numbers.

Would genuinely be curious how anyone gets on that reaches out to another co-op. Had been speaking to a few insiders at one particular major co-op and my understanding is that they’ll happily take on 1 or 2 suppliers here and there that want to leave as long as they’re side by side with their own suppliers already but they won’t be making any big swoops that could cause a ripple of any sort.

As I have educated myself more it seems like a fair deal and I'd have to say fair play to people for finally getting it sorted. It's just a pity the way it was communicated so poorly. It's not like to the kerry lads not to keep their cards closer to their chest before the time is right.

You're getting off to a bad start accusing people of being "emotional".

We're seeing triumphalism and winning at the bookies touted as having superiority towards calling things out fair and square in response to presentations full of spin being rightly highlighted.

Of course the board have done the best they could, so did the last one, and the one before it.

The relationship between the processors and farmers is always very imbalanced, and those with the power have used it, those without have stopped resisting.

Here's what we have, the final answer, take it or , well, just take it.

So all shareholders are going to have 15% of their current holdings tied up in the new venture? Is this correct? When will we ever get a chance to get that money out?

He has a high profile alright...they certainly did rock the Kerry coop cradle at the AGMs

Glad I reduced some of my holding a few years back when the grey market price was strong. Don't like them taking 15% of the value of my holdings and putting them in a new venture I've no interest in and unlikely to get my money back any time soon, or ever! Thought they didn't like having so many shareholders but now they're glad to dip into everyone's pocket to fund this. For every 100 shares you own they're keeping about 8.5k towards the new venture, based on current Kerry Group price.

They always was going to be a trade off ... Recieving actual plc shares is a bonus though for that trade off

You'd be hoping they'd increase in value to at least €100 + in the future...who knows...they could easily go the opposite way again.

I suppose it will depend on the price they will pay for milk but I suppose most lads will be waiting to see how it all pans out.

I think the biggest risk will be the leakage of some very large suppliers in other processors catchment areas. If enough go it could be a downward spiral. The only hope would be if the food brands can deliver enough profit to prop up the milk price.

I certainly wouldn't be interested in signing up to a long term supply agreement. Once burned and all that.

That can not be true ,CGT is unavoidable unless you have a capital loss elsewhere to balance against the gain .