A new dairy co-op, Arrabawn Tipperary Co-operative Society, has been formally established at its inaugural board meeting today (Friday, February 28).

The new co-op has 1,400 dairy farmer suppliers, with the new dairy business - a merger of Arrabawn Co-operative Society and Tipperary Co-operative Creameries - saying the new venture "consolidates the future of dairying" for those farmers.

The board meeting was held in Nenagh, Co. Tipperary today, and followed separate meetings of the boards of the outgoing merging co-ops, Arrabawn and Tipperary, on Wednesday (February 26) when the merger terms were formalised.

The society will be owned by over 4,800 members.

More than 1,400 farmers across 16 counties will supply an envisaged 750 million litres of milk annually, with projected annual turnover in excess of €700 million.

The inaugural board meeting saw the appointment of a founding chairperson, board members and executive. Edward Carr, of Kilcommon, Co. Tipperary, was appointed inaugural chair of the co-op, with outgoing Arrabawn CEO Conor Ryan appointed as CEO of the new venture.

Other appointments included Barry Donnelly of Killimor, Co. Galway, as vice-chairperson; and Billy Walsh from Toomevara, Co. Tipperary, to the role of company secretary.

Kevin Murray from Templederry, Co. Tipperary, and Eoin Doorley from Birr, Co. Offaly were also appointed to the new board’s management committee.

The co-op will include:

Two primary ingredient manufacturing facilities at Nenagh and Tipperary town, processing almost 900 million litres of milk products annually;
15 agri-trading stores, including facilities at Nenagh, Tipperary town and Athenry;
Feed brand Dan O'Connor Feeds;
French-based cheese production facility Tippagral.

The new business said that the merger will also help underpin "the significant investment" undertaken at both processing facilities in recent years through "heightened efficiencies across the plants and the society’s wider operations".

The inaugural chairperson, Edward Carr said: "Today is a historic day for our members, for staff, for dairy processing in Ireland with the formation of our new co-op.

"This merger is a growth opportunity, and a natural coming together and consolidation of two neighbouring co-ops to create a more resilient and dynamic future for its members.

"Our job now as a board is to honour that legacy by building towards the future with the creation of a competitive new force in Irish dairying," Carr added.

The CEO Conor Ryan said: "This is a pivotal day for dairying across our entire catchment, from the west to the southeast of Ireland. A huge amount of work has gone into this over the past nine months and it's right that we pay tribute to all those who contributed on both sides for their commitments to make this merger happen."

"The merger is a natural evolution for both co-ops and sets us up positively for the future, enabling us to meet the market fluctuations that will inevitably come our way," he added.

"We now set about ensuring the best possible transition into this new entity and look forward to delivering the growth and efficiencies that will create and sustain a competitive future for the co-ops and its members," Ryan said.