GLANBIA’S 8,200 co-operative shareholders will decide this evening whether or not to back a €343 million bid for Glanbia Plc’s Irish milk operations.

They will be asked to reverse the trend of the last three decades in the dairy industry when co-operative societies set up PLCs to run their national and international business for them.

The vote by co-op members will see them seek to gain farmer control over the Irish dairy operations and drop their shareholding in the plc from nearly 55 per cent to a low of 10 per cent. This will require a 75 per cent majority.

While the co-operative and plc have been pushing for agreement at more than 50 meetings with shareholders over the last number of weeks, quite a sizable rump of shareholders – especially grain growers – are less than happy with the deal, believing dairy producers will have too much influence.

While the Irish Creamery Milk Suppliers has come out forcibly in favour of the farmer buyout, the Irish Farmers’ Association (IFA) has been muted in its support. Its president, John Bryan, has gone no further than saying he agrees with the principle of farmer control.

The central executive of the Irish Fresh Milk Suppliers, which represents nearly 1,100 of Glanbia’s milk suppliers, has come out in support of the deal, which will also have to be ratified by a 75 per cent majority by the dairy suppliers.

Nearly half of the co-operative shareholders are milk producers who would appear to be in favour of the deal. But grain growers and non-milk suppliers do not appear to have the same appetite for the venture.

The chairman of the co-operative society, Liam Herlihy, welcomed the support of the farm organisations.

The IFA had raised the issue of the projected €70 million annual earnings projected in the deal and on future liabilities, especially relating to the pension liabilities facing the society.

Mr Herlihy said shareholders could be assured the projected earnings were achievable and sustainable and pension liabilities had been fully provided for.

He added the society had reaffirmed its full commitment to grain and grain growers as an integral part of the business and had given assurances ensuring the most effective representative structures for growers in the new structure.

The voting will take place at a special general meeting of the society to be held in private in Kildalton College, Kilkenny.

There should be a result by late evening.