GLANBIA Plc, will announce excellent first-half profits this morning (Wednesday). Plans to fund the construction of a new milk processing facility in South Kilkenny which received planning permission last week are expected to be revealed afterwards when it is formally confirmed that a way of separating Glanbia Co-op from Glanbia Plc (the co-op owns 54.4% of the Plc) has been found which will involve releasing the value of the coveted co-op shares held by so many farmers in Kilkenny and surrounding counties. A joint venture will be set up between the Co-op and the Plc to fund the milk expansion plans after the quota regime for milk ends in 2015. There will also be cash for the co-op members but will it be enough to tempt them to give up control of one of the most profitable businesses in the country which generates huge profits in the US and around the globe and has been unaffected by the Irish recession in favour of gaining control of the milk business in Ireland.
However it will require a 75% majority of co-op members to agree to it before it can happen. It will be a case of deja vu for some as the Yes campaign, court farmers and tell them what a good deal this is for them. It’s not that long ago since an attempt to cut all ties between the Plc and Co-op was narrowly rejected by the co-op members.