Key creamery merger given the green light
DEAL WILL SIGNIFICANTLY INCREASE NORTH CORK CREAMERIES PROCESSING CAPACITY
THE CEO of North Cork Creameries, Pat Sheahan, has said its merger with Newtownsandes Co- Operative would “continue to serve the best interests of all our milk producers.”
His comments came following confirmation that the Competition and Consumer Protection Committee (CCPC) has approved the merger of North Cork and its Moyvane, Co Kerry-based counterpart.
The move had been voted on and approved at separately held special general meetings (SGM’s) by shareholders of both co-operatives at the tail end of last year.
Both co-operatives had been in discussions since January of last year about the possibility of an amalgamation. Their respective SGMs approved the merger by a show of hands and a ballot was not required in either case. The process was overseen the Irish Co-operative Organisation Society Ltd (ICOS) and the merger will be formally completed within the coming weeks.
Renowned for its innovative approached, North Cork Creameries boasts a portfolio of world-class dairy products and food ingredients manufactured to the highest international standards. Its dairy food ingredients include milk powders, caseins, whey and bulk and prepacked butter for a diverse range of food manufacturing applications.
It also supplies fresh liquid milk, whipping creams and butters to leading multiple retailers.
The neighbouring creameries already have a history of working closely together through a commercial dairy processing arrangement already in place under which North Cork already processes some 23 million litres annually into a wide range of quality dairy products for Newtownsandes.
Once the merger has been adopted the businesses of both co-operatives will be combined, with all existing milk processing arrangements continuing as normal.
It will mean that moving forward North Cork will process more than 240 million litres of milk each year, with the capacity to increase overall processing capability to more than 360 million litres. Importantly, this will allow for ongoing expansion by producers across its operational sphere.
Mr Sheahan said each society had a long standing heritage of commitment to co-operative dairy farming and share mutual business development aims that complement the interests of milk producers and rural communities.
“This merger builds on an already successful milk supply and processing relationship which will now go from strength to strength and I warmly welcome the members of Newtownsandes to North Cork where we will continue to serve the best interests of all our milk producers collectively on the most efficient and competitive basis possible and long into the future,” said Mr Sheahan.