Dairygold is to hold its 2013 AGM and SGM on Thursday, 11th April in the powder store on its Mallow site and says that it is vital for all active farmers, including those who want to expand milk production from 2015 when the quota restriction ends, to turn up in large numbers to endorse the society’s expansion plan and the Milk Supply Agreement on which it relies.
A statement to The Avondhu this week reads: “If Dairygold is prevented or delayed in implementing its expansion plan, the society will not have sufficient processing capacity in place to process all the milk from 2015 onwards. It might be hard to imagine but if the Co-Op’s plan is obstructed or delayed, the appalling prospect of offering distressed (over capacity) milk to other processors in Ireland or abroad (who may or may not have available capacity) becomes a reality, with the certainty of a serious negative impact on milk price.
“Every supplier needs to assert his or her support for expansion rather than take any risk of a vote to ‘shelve’ the expansion plan and ‘to start all over again’ to come up with the same plan in two years time or more.
“When all the debate is stripped down to the basic facts, the SGM has become a question of whether farmers choose ‘for’ or ‘against’ expansion. Protest action to date has caused risk for the business in different ways. Publicity generated has caused concern for key stakeholders suppliers, customers and bankers and if, for any reason on the day, the resolution against the expansion plan were to be supported, it would have several serious implications for the business and for farmer aspirations to expand milk production.”
The society claims this would have ‘significant negative impact on milk price and stop investment in expanded processing capacity in its tracks’. “Furthermore it would see farmers produce milk that the society will not have the capacity to process and undermine confidence and seriously impact the performance of the business.
“If farmers want a secure and prosperous future in farming they need to come out, rather than rely on others to do so, to endorse the expansion plan in place and give the society the mandate to proceed to implement the plan to have processing capacity in place for the increased milk volumes ahead.
“The society is calling on all members entitled to vote at the SGM, to make the big effort to travel to Mallow on the day, to endorse and vote in favour of the expansion plan and to reject the resolutions put forward by a protest group, which by obstructing expansion, will threaten the wellbeing of the society and its members.”