Milk Price- Please read Mod note in post #1

Under the Tagline 'we have to be realistic' on milk price.
The Three Amigos on Agriland

https://www.agriland.ie/wp-content/uploads/2016/04/Dairygold-1024x717.jpg?4b448f

Between them they earn about €1M a year.

Anyone try a value for money audit???

Very good letter on the letter page in the journal from Edmond Phelan about Glanbia, maybe someone could link it

freedominacup wrote: »

What's Felix saying now?

http://www.farmersjournal.ie/letter-re-glanbia-agm-salaries-and-milk-price-207021/

freedominacup wrote: »

He's right. That shareholding is worth north of 100k per shareholder net of cgt. It's called taking your money off the table and they'd be queuing around the block form all quarters but esp icos and financial services to tell us how mad we are. I would only be talking about the shareholding in glanbia plc atm. We're stuck with GII I think but having control of our processing to some degree is probably a good thing.

Sensible letter that.

It's bad enough watching the snouts in the trough in these jumped up agribusinesses but being patronised by having your own savings dribbled back to you "when you need it" takes the biscuit.

I assume the strategy in the co-op is to hang on to the PLC shares so they can be used in a placement when the time comes to buy out the other half of GII?

I can't see these characters voting to make their little empires smaller when the day of reckoning arrives.

kowtow wrote: »

Sensible letter that.

It's bad enough watching the snouts in the trough in these jumped up agribusinesses but being patronised by having your own savings dribbled back to you "when you need it" takes the biscuit.

I assume the strategy in the co-op is to hang on to the PLC shares so they can be used in a placement when the time comes to buy out the other half of GII?

I can't see these characters voting to make their little empires smaller when the day of reckoning arrives.

As long as the co-op has that shareholding kt the value placed on the plcs shareholding in GII will be think of a number and double it. And if that's not big enough to bring the co-op shareholding in the plc below 10% stick another 100 million on the asking price. If we wait until then we are going to get turned over so badly future generations will curse us. We (or certainly older generations ) built this business. If it's going to be sold it can only be sold once and we need the absolute max cash return for the effort.

Roll up, Roll up, 3 for 1 offer.
Carbery, we'll give ye these three for one of your's, Dan McSweeney.

The Three Amigos. not the three monkeys.

https://www.agriland.ie/wp-content/uploads/2016/04/Dairygold-1024x717.jpg?4b448f

We'll even pay their wages, but its a great offer, Pleeeeze, Pleeeeze.


Lads, we have two parallel stories here, but Glanbia and Dairygold are the stars of the show, the ugly sisters.

im afraid we have no control over gii, the make up of the board alone shows that with the voting power evenly split between plc and coop with gii ceo making the deicing vote even though we are the majority shareholder in gii, how many shares has he in plc...vested interest as he wants share appreciation in the plc and he get a nice salary from gii, whats his focus!!! the lads at board meetings deciding milk price are pretty much getting told whats happening

has the coop an exit plan if glanbia becomes a take over target? our shares are not trad able like other investors so we will be slow to react which lower the value of coop shareholding, as minority interest shareholder we have no say anymore, aggressive growth while can be rewarding is a high risk strategy and all it takes is one poor investment to kink the armour

the price set if we do want to take over remain balance of gii is structured in a way that makes it very difficult/costly to take full control and so the current status quo will remain i dont see it happening can see us eventually getting so sick of it that we find a buyer to come in for the remaining 40% much easier said than done, there was no plan to buy out balance at time of spin out so doubt much has changed now

farmers/coop members were so impressed with john maloney they wanted him on the gii board which was crazy from a business point of view, great for the arse licking that goes on, to have 60% control and somehow have the ceo of gii making a deciding decision is not logical, (john maloney did a great job getting farmers shareholding below magic number, congrats on that id have a lot of admiration if i was a shareholder and he sold a nice bundle of shares which one could says a lot about how he views the company in the future...cash in he did, he still has a nice shareholding and i would take the view he sold to give that exact impression to the coop suppliers in the hope they sold too

dwag was saying about a super cycle and he could be right a bit early to tell, us back buying stocking up on crude, china while they have slowed and they have stock piles of ore in the ports they are just now able to show there power and the effects they alone can have on world markets (a bit of screwd politics me thinks, there sending there kids to us and eu colleges gives them great insight) they are building mad out in Africa and Caribbean and there workers are all out there flat out with loans given to the countries by Chinese so there winning both ways. dont think milk will follow oil this time consumption is obviously not there even though thats the line we keep getting fed about growing populations, they might be growing but can the afford and or tolerate milk, were in a trade war and the battle fields are our farms

atlantic mist wrote: »

im afraid we have no control over gii, the make up of the board alone shows that with the voting power evenly split between plc and coop with gii ceo making the deicing vote even though we are the majority shareholder in gii, how many shares has he in plc...vested interest as he wants share appreciation in the plc and he get a nice salary from gii, whats his focus!!! the lads at board meetings deciding milk price are pretty much getting told whats happening

has the coop an exit plan if glanbia becomes a take over target? our shares are not trad able like other investors so we will be slow to react which lower the value of coop shareholding, as minority interest shareholder we have no say anymore, aggressive growth while can be rewarding is a high risk strategy and all it takes is one poor investment to kink the armour

the price set if we do want to take over remain balance of gii is structured in a way that makes it very difficult/costly to take full control and so the current status quo will remain i dont see it happening can see us eventually getting so sick of it that we find a buyer to come in for the remaining 40% much easier said than done, there was no plan to buy out balance at time of spin out so doubt much has changed now

farmers/coop members were so impressed with john maloney they wanted him on the gii board which was crazy from a business point of view, great for the arse licking that goes on, to have 60% control and somehow have the ceo of gii making a deciding decision is not logical, (john maloney did a great job getting farmers shareholding below magic number, congrats on that id have a lot of admiration if i was a shareholder and he sold a nice bundle of shares which one could says a lot about how he views the company in the future...cash in he did, he still has a nice shareholding and i would take the view he sold to give that exact impression to the coop suppliers in the hope they sold too

dwag was saying about a super cycle and he could be right a bit early to tell, us back buying stocking up on crude, china while they have slowed and they have stock piles of ore in the ports they are just now able to show there power and the effects they alone can have on world markets (a bit of screwd politics me thinks, there sending there kids to us and eu colleges gives them great insight) they are building mad out in Africa and Caribbean and there workers are all out there flat out with loans given to the countries by Chinese so there winning both ways. dont think milk will follow oil this time consumption is obviously not there even though thats the line we keep getting fed about growing populations, they might be growing but can the afford and or tolerate milk, were in a trade war and the battle fields are our farms

It is very unlikely that GII will become a take over target with the Co-op having a 40% interest. For a hostile takeover to succeed the bidder needs to acquire 70% of the shares. with the co-o[ owning 40% this figure cannot be attained. Even if the co-op went below 30% again it is unlikely that a hostile take over will succeed as there are farmers that hold shares.

The real issue with co-op that have plc's attached at present is that they seem tied to supplying milk to these company's only. Maybe it is time for the boards to start looking at different buyers for there milk. For instance Glanbia co-op could have done a deal with Stratroy last year and instead of suppliers leaving Glanbia co-op the co-op could have sold milk to Stratroy. Kerry is similarit is time for co-op that are supplying plc's to start looking for to diversify there supply structure. This should start to happen when the next upturn takes place or when the present GII/Glanbia co-op contract ends

WheatenBriar wrote: »

Not much chance of seeing that when as a shareholder you're not even allowed to see GiiL's p&l

When was the last time you contacted your board member about this. When was the last time a board member in your county was put under pressure never mind to say removed? No point bitching. I'm told that in certain counties,notably Kilkenny, a man (and it's always a man) will be elected sometime between 35-45 and simply left collecting his cheques for the next thirty years because the suppliers/shareholders couldn't be arsed to do anything about moving them