Ornua’s monthly meeting of directors was cancelled yesterday as tensions have reportedly emerged between the farming co-op that owns Kerrygold and listed dairy group Glanbia, which owns 25 % of the Irish agri-food cooperative.
The row is due to row over Glanbia’s US launch of Truly Grass Fed a natural dairy ingredients range from Glanbia Ireland that Irish farmers fear may erode Kerrygold’s gilded position in the US market, reports The Irish Times.
The meeting was reportedly to have been attended by Glanbia’s nominees to Ornua’s board, Jim Bergin of Glanbia Ingredients and Martin Keane who is also Glanbia’s chairman.
Farming sources told The Irish Times that some of the other shareholders in Ornua have concerns about the presence of the Glanbia directors at board meetings where the US performance of Kerrygold would feature, given Glanbia’s decision to effectively launch a competing brand in the US.
Ornua said its directors were 'considering certain governance matters' this week following the board meeting cancellation.
It is understood that Wednesday’s discussions at Ornua included the future relationship with the Glanbia nominees on the board. A source said 'nothing was off the table' but no conclusions had yet been reached.
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.