Kerry farmers vote themselves £130m in paper profits

KERRY farmers, the first to bring their agricultural co-operative to the stock market, yesterday voted to make an effective £130 million plus profit on their investment and in the process created a new millionaire class in the county. Over 3,000 people packed the biggest hall in Kerry in the Brandon Hotel Conference Centre for the crucial vote which had all the intensity of a by election.

Just 10 years ago, Kerry Co-op shareholders decided to float their company on the stock market, creating one of the great success stories of the Irish food business Kerry Group. In 1986, fearful that the new company would be ruled by Dublin based institutional investors, they created a complicated rule structure which ensured the coop would keep a minimum 51 per cent stake in Kerry group.

Yesterday afternoon, at the prompting of an uncharacteristically emotional Kerry managing director, Mr Denis Brosnan, coop shareholders voted overwhelmingly to create a new minimum share holding level in Kerry Group of just 20 per cent.

In the coming months this will result in over £130 million in Kerry Group's shares being handed over to the 7,200 Kerry Co-op shareholders. Many will become millionaires overnight, most will pocket in excess of £20,000 in Kerry Group shares.

Just two weeks ago, over 2,400 people attended the first of two special meetings required to pass the proposal to reduce the co-op's stake in Kerry Group to below 50 per cent. At least 75 per cent of those present and voting at each meeting had to pass the proposal for it to be approved.

The massive crowds who attended the first day's balloting took Kerry management by surprise, and in sweltering heat the key motion was passed by a majority of 85 per cent to 15 per cent.

In the intervening two weeks, those for and against canvassed the 4,700 strong electorate on a house to house basis with intensive telephone canvassing also taking place.

Special arrangements were put in place for yesterday's meeting. A 50 kilowatt portable air conditioning system was installed in the Brandon Conference Centre which resulted in four massive sausage like plastic hoses being attached to the conference centre ceiling.

A 10,000 square foot Marquee was erected at the rear of the conference centre to facilitate voter registration, and Tralee's main car park was commandeered as gardai mounted a traffic management operation to ease congestion in a town already packed with holidaymakers.

Mr Brosnan, chief executive of the co-op and managing director of Kerry Group, made an impassioned plea at the outset to co-op shareholders to vote in favour of the proposals.

He retraced how Kerry Co-op had a turnover of just £1 million in 1972 and today had evolved into Kerry Group with a turnover of £1.2 billion.

"I am asking not for an 85 per cent majority but I ask for a unanimous vote in favour of these proposals so that we can walk out of here united and on the right way forward, he said, his voice quivering with emotion.

Two hours later, after the votes were counted, he got the overwhelming majority he wanted. But the `no' campaigners had done their work and with an extra 600 votes present, the winning margin was cut from 85 per cent to 80 per cent with 20 per cent against.

The votes were counted and the bar at the Brandon Hotel was packed five deep at the counter as the farmers celebrated backing the right horse 24 years and seven months ago when they selected Denis Brosnan as their chief executive.