THE chief executives of Avonmore and Waterford co-ops have once again emphasised that the proposed merger of the two co-ops has no implications for farmer control of the enlarged co-op. Both co-ops hold crucial special meetings tomorrow week where 75 per cent of votes in favour of the proposed merger will be required if it is to go ahead.
Avonmore chief executive Mr Pat O'Neill and Waterford chief executive Mr Malt Walsh also, stated that events in the dairy and retail industries, in the three months since the merger was first mooted by Avonmore, had made it even more essential for the Irish dairy industry to respond.
Mr O'Neill said: "I couldn't have anticipated such changes in the space of 12 weeks; they have been absolutely dramatic and we need to respond or go backwards."
He specifically mentioned the giant dairy merger in the US where the union of Mid American and AMPI will create a group with four times the entire Irish milk pool and other dairy mergers in New Zealand and the Netherlands, as well as the arrival of Tesco and Safeway as major players in the domestic retail market.
"Eighty per cent of our food is exported. If our competitors get stronger, we'll be on the slippery slope. The merger of our two co-ops presents a unique opportunity and is the best route for both organisations. We can't just stand still."
Mr O'Neill said: "I have never got up in front of farmers and told them they had only one option. What I am saying is that this merger proposal is the best option for both organisations."
On the question of farmer control, both Mr O'Neill and Mr Walsh said there was no question of farmers losing control of the merged co-op. "Farmers will always decide on the question of control. If the merger goes ahead, the co-op will hold 55 per cent control of the plc and farmers themselves will hold another 20 per cent," said Mr O'Neill.
On milk price, Mr Walsh said that Avonmore Waterford would control the biggest milk pool in the State and would be able to pay the best milk price well into the next century.
