More than 50 per cent of Wexford Milk Producers (WMP) have signed milk contracts with Glanbia Ingredients Ireland Limited (GIIL) over the past number of weeks.
This represents 58 per cent of its milk pool, according to a spokesman for Wexford Creamery, who added the sign up with GIIL is continuing at a steady pace.
“All that is required is Competition Authority approval that will run into February,” he added.
Glanbia and WMP agreed a deal last December to pay €20m, of which €3.7m is in cash for co-op. For the deal to succeed, it needs more than 50 per cent uptake of new GIIL WMP milk contracts, representing a 60 per cent milk pool, and approval from the Competition Authority.
“GIIL is satisfy with the current contracts and requirements. The sign up of the contracts is continuously creeping up. It is ongoing and on a steady basis,” the Wexford Creamery spokesman added.
Meanwhile Strathroy Dairy, who has also declared an interest in the co-op, has sealed a deal with 40 WMP members who switched to the Omagh-based producer. However, given the high uptake of contracts with GIIL, it seems unlikely that its bid for Wexford Creamery will be successful.
The AGM of Wexford Creamery is taking place on 13 February and a special general meeting is also set, where to motions of confidence in the board and no confidence in the board are being tabled.
