The future of Golden Vale's milk processing operations in Charleville dominated a sometimes acrimonious annual general meeting, with chief executive Mr Jim Murphy rejecting efforts by a group of shareholders to make it clear what the future of the plant is.
Former Golden Vale chairman Mr Denis Wallis repeatedly asked Mr Murphy to clarify the situation, only to be rebuffed by the chief executive who told the a.g.m. that discussions on the future of the milk processing operations were under way. He said IBI Corporate Finance was involved in discussions with a fourman committee from Golden Vale Co-op, who are represented by NCB.
Mr Murphy has previously laid down four options for the future of the loss-making Charleville milk processing operations. One involves a possible sale of the milk business back to the co-op while another involves some sort of joint venture with another dairy processor. A merger between Golden Vale Co-op and neighbouring Dairygold has been rumoured but neither party has commented on such a link-up.
Unlike companies like Glanbia and Kerry, where the parent coop has a controlling or at least a large minority stake, Golden Vale Co-op has no equity stake in the plc, although co-op members individually hold about 30 per cent of the plc shares.
"We'll do whatever is right for all shareholders," said Mr Murphy who declined to comment on a question from Mr Wallis as to why a fifth option of merging the plc with another food company was not also being explored.
"One option is for farmers to purchase some or all of these assets. We believe that we have to do something to get the milk business and the milk processing sector in shape for the future," he said.
But Mr Wallis said: "I'm as wise now as when I came to the meeting. The confusion is still the same out there. You haven't answered any of the questions. When this company was floated 11 years ago, a commitment was given to treat farmers with respect. I hope you remember that commitment."
Mr Murphy replied: "You know what can be said in public and what can't be. We want to take account of all interests. There is a four-man committee from the co-op looking at the possibility of buying the milk processing back."
He said later that losses in the milk processing part of the industry were specific to the Charleville plant and that there was no question of divesting either the milk business in Bailieboro or in Northern Ireland.
Golden Vale's butter and skim milk powder operations in Charleville lost £700,000 last year, losses that were more than balanced out by a bumper performance from the group's consumer foods business.
