Kerry Co Op Shares

To do the above the co-op would have to guarantee a profit margin of over 3% of total earnings, glanbia plc did this as part of the 1st joint venture between the co-op and plc, they retained a 40% share in the business...

The dividend in 2021 was meant to be 14 million payable to the plc but was waved as part of the deal to acquire the remaining 40%, given over 3 billion litres of milk was processed that year, and kerrys milk pool is 1 billion, 7.5 million is a pretty hefty yearly fee to be paying out for 30% of their remaining share in the new venture compared to what glanbia plc where getting at the time

Ornua was put there through years of levies on producers milk cheques. Surely a shareholding of that coop would require an adequate share up investment.

Not paying suppliers for their full.supply might just be an own goal.

What happens in 2025 when a supplier has supplied their contracted amount of milk?

Are they from that point "uncontracted"? Have they fulfilled their side of the contract, therefore free to supply another entity?

Hypothetically, you could see suppliers leave from July onwards.

Tirlain could easily process half a billion litres of it, their new plant was built on a forecasted milk supply of 3.6 billion litres, their hoping now they can hold it at 3 billion, we aren't back in 2021 when year on year milk production was climbing at 3% odd precent a year, processing capacities bar Kerry where built thinking this was going to continue for the next few years, every drop of kerrys milk pool is easily absorbable into neighbouring processors without a cent having to be spent on extra facilities

Tirlan is the other side of the country, dose it want the milk can it sell the milk. It record on milk price is no better than Kerry. As well it often sets term and conditions of having to buy feed and fertlizer off them to achieve there maximum price. Kerry for all its flaws dose not mind where you buy your inputs

What occurred from 2017 to 2022 that lead to tirlian been such a bad payer with the corner only been turned the past 2 years?

Kerrys current planned deal is almost a carbon copy of the 1st stage of tirlain as a co-op taking over from the plc, only difference is the entirety of the funds raised to purchase the business came from share sales,with members co-op shares been raided to do this along with pay for processing , present day its well over a billion euro after the last vote...

What is Kerry co-ops master plan to circumvent having to pay a poor milk price, as servicing debt and funding processing upgrades will gobble up cash

Arrabawn are looking for suppliers I heard

Kerry have pisssed off their suppliers big time and it wont take too much for them to bale ,Kerry mark2 will be left with small supply from.the most isolated areas where it wont pay Dairygold enough to travel to collect it is looking alot like

All this talk of switching to other suppliers, it may not be as simple as people think. I would imagine you don't just rock up with your hands in your pockets. No matter who you wish to supply I would imagine you would be required to share up. After all their existing suppliers had to stump up for the processing facilities day one.

I would imagine they are waiting to see how things pan out. No point in washing your laundry in public.

why would any share holder want to hair cut 15% of their shares , which return plc dividends and in time would be worth there full value in plc shares . It’s ridiculous.
it’s evident from the shiny brochure that the plc want to move away from low value milk processing , but the co op want you to invest .
Dumb .

Share holders need to vote No

Wait ,

The plc will find another and then the co op will be beached with no reason to exist and liquidate the lot and return everyone their full plc share value ,

But the plc have no milk contracts to sell , but a worn plants and un competitive stores ,

So it’s a match in heaven for them together ,

And the milk suppliers will be left to fill the gap in a shrinking milk pool on heavy west of ireland soils and deteriorating weather patterns .

Dairying in kerry is looking bleak .

The majority of the Kerry coop shareholders are more interested in the continuing success of Kerry plc and hopefully success for Kerry coop in their future.…

totally agree , the suppliers in remote areas are the ones that buyers would be least interested in , but that the swings and roundabouts ,

At the end of the day , I will be surprised if some of the large kerry suppliers will pay 20k to 50 k per annum in to this , and if the east limerick guys don’t transfer to other buyers .
even killarney is only 40 minutes to mallow .

Hi Popa Smurf. Thank you for getting in touch. I’ll try answer to the best of my ability

1. Yes as far as I know if you have 400 co-op shares now you’ll get the same amount of shares in the new co-op
2. They haven’t said anything yet about the milk suppliers getting shares but tbh I’d say they definitely will. To be fair it’s the milk suppliers that will be paying off the loan and the fruits of their labour will eventually be buying the final 30% which will all be driving on our investment you’d hope.
3. I’ve heard rumours about people being able to actually buy shares in this new co-op if they choose to do so but the communication so far from the co-op & the PLC hasn’t been the best 😂😂

Great that you’re fully behind this JV, it’s the only way to ever get your shares out in a tax efficient manner. There’s fellas here talking about liquidation but we could all bet all our farms that never in a million years would 75% of the milk suppliers vote for a liquidation

Lakeland and Dairygold have come out today , warning that plants would have to close if milk pool shrinks ,

Plenty of scope for us to find new buyers ,

Suppliers should not be afraid , they need to stop be herded by the scare mongering of the plc who would have nothing to sell but a plant with no milk and kerry co op who would have no reason to exist ,

It’s all about the plc pulling a couple of 100 million out of the farmers and off they go ,

Even to lose the 30% down the swannie , they would have more banked , than holding the plants with the west kerry and clare suppliers ,

The plc are master class at manovering ,

So suppliers don’t worry , let kerry sign up for the gullotine , you will get your chance to vote with your feet , when other options appear after the dust has settled