FDBusiness.com

New Irish Dairy Processing Joint Venture

 Breaking News
  • Nestlé to Sell US Confectionery Business to Ferrero Nestlé has agreed to sell its US confectionery business to Ferrero, the third-largest company in the global chocolate confectionery market, for SFr2.8 billion ($2.8 billion) in cash. Nestlé’s 2016 US confectionery sales reached about SFr900 million. The transaction is expected to close around the end of the first quarter of 2018 following the completion of [...]...
  • Asahi Super Dry Re-launching in the UK Asahi UK, the UK subsidiary of Asahi Europe, is boosting its strong portfolio of beer brands by re-launching Asahi Super Dry in Britain in its authentic form. For the first time in Europe, full access to the exact Japanese brewing standards have been given to Asahi Europe and these innovations will bring the authentic taste [...]...
  • Natural Preservatives Extend Frying Oil Shelf Life Arjuna Naturals Extracts has launched its natural preservative formulation for combating oxidation, thermal degradation, hydrolytic rancidity and extending the frying cycle of vegetable oils. The new, all-natural preservative formulation contains a few simple ingredients and enables a clean label. It is GMO-free, oil-soluble and vegan. Initial response was so strong, Arjuna Natural Ltd. decided to [...]...
  • Alison Unveils New UK-made Bread Basket Dolly Alison Handling Services (AHS), Europe’s largest stockist of plastic containers and boxes, has introduced a new bread basket dolly designed for standard (762 x 508 x 216mm) 12-loaf stack nests. Capable of holding up to eight nests and available in grey or purple (to match Alison’s distinctive trays and baskets), the dolly has been designed [...]...
  • Irish Supermarkets Benefit From the Christmas Spirit The latest grocery market share figures from Kantar Worldpanel in Ireland, for the 12 weeks ending 31 December 2017, reveal that shoppers spent an extra €90 million on groceries over the festive period. David Berry, director at Kantar Worldpanel, comments: “Over the Christmas period the average household spent a record €1,532 on groceries – an increase of [...]...

New Irish Dairy Processing Joint Venture

New Irish Dairy Processing Joint Venture
August 30
11:50 2012

Glanbia, the global nutritional solutions and cheese group, has agreed with its majority shareholder, Glanbia Co-operative Society, to enter into a joint venture in respect of its Dairy Ingredients Ireland business. The proposed joint venture will be 40% owned by Glanbia with Glanbia Co-operative Society holding the remaining 60%. Separately, but related to the joint venture, Glanbia Co-operative Society has announced that it intends to reduce its shareholding in Glanbia to 41.4%.

The proposed joint venture, to be known as Glanbia Ingredients Ireland, incorporates the business and assets of Dairy Ingredients Ireland, a business unit of the Dairy Ireland division of Glanbia, including its 45% share of the Corman Miloko Ireland JV and its 23% shareholding in the Irish Dairy Board.

The existing DII business is the largest dairy ingredients processor in Ireland, assembling a milk pool of 1.6 billion litres and processing it into about180,000 tonnes of dairy ingredients largely for export to over 50 countries worldwide. In 2011, DII generated revenue of Eur738 million, operating profit of Eur33 million and EBITDA of Eur44 million. As at 31 December 2011, DII had gross assets of Eur313 million.

There is a compelling strategic logic for the creation of the joint venture for both parties as it facilitates the expansion of dairy processing inIreland in advance of EU milk quota abolition in 2015, while also ensuring that Glanbia’s financial resources are directed towards business segments that deliver the highest return on capital for all shareholders.

The opportunity to expand milk production is underpinned by a positive long-term outlook for global dairy markets and the comparative advantage thatIrelandenjoys as a grass-based system. It is envisaged that GII will seek to increase existing peak dairy processing capacity by up to 60% through a total investment programme of Eur180 million to 2020. Planning permission is progressing for a new greenfield facility at Belview, County Kilkenny. The board of GII will reflect the relative shareholding of the joint venture partners and the existing management will remain in place. The financing of GII will be independent of the joint venture partners.

John Moloney, group managing director of Glanbia, comments: “The proposed joint venture offers a compelling proposition for all stakeholders for the longer-term as it facilitates the desired expansion of dairy processing by Society members and allows Glanbia to continue to focus on its successful international growth strategy. The abolition of EU milk quotas in 2015 will initiate a new era for milk production and offers increased prospects for the Irish dairy industry through a clear opportunity to expand milk supply. Glanbia already has a number of successful international dairy joint venture operations in the UK, USA and Nigeria.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • January 16, 2018Sival Plant Production Trade Show
  • January 17, 2018Anfas Food Product
  • January 17, 2018Dutch Organic Trade Fair
  • January 19, 2018International Green Week
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements