In December 2021, farmers voted in big numbers to allow the then Glanbia Co-op board of directors a free hand at creating an investment pot of funds by converting Glanbia plc shares.

Jim Bergin was the CEO of Glanbia Co-op at the time. He said two things – this was just a change of asset class, and they had the skillset to manage such an investment fund. No big investment was made.

Tirlán’s Sean Molloy is now in the hot seat.

This week, Tirlán farmers are being asked to vote to make the pot of funds even bigger.

The theory remains the same: potentially broaden the co-op’s income stream and diversify. In 2021 we said the fund creation was a positive move, and it is hard to argue with this week’s vote either.

The one caution that emerged in 2021, and again this week, is around the free hand that the board has to make a significant investment (over €700m of owned funds) without any recourse to shareholders.

Three points on this. First, at farm level we have seen significant change in margins and regulations over the last two to three years. Potentially, the rules for producing milk in Ireland could change even more.

Maybe the core owners and businesses will need the investment pot?

Secondly, through a wider lens we have seen how other large global co-ops had to pivot.

Fonterra, the large New Zealand co-op, was on a global investment journey. Under new management, they now have done a complete U-turn to focus on core business closer to home.

Thirdly, it is very easy spend someone else’s money unwisely if at first you don’t have to build a comprehensive business case with the owners, in this case ultimately the farmer shareholders.

Tirlán management shouldn’t be afraid of explaining or justifying a new investment journey to shareholders and suppliers. If it stands up to shareholder scrutiny, they have a stronger hand.

The Glanbia plc share price was at €12/share in 2021, it almost reached €20/share in 2024, there should be no immediate rush to divest its shareholding.

Both costs and prices key to weanling profitability

Over the last few weeks we have seen exporters drive the weanling trade to new heights, with some exceptional prices being paid for autumn-born weanlings.

It’s a badly needed shot in the arm for weanling producers who have always been at the bottom of the pile when it comes to farm incomes. Supports are critical to the survival of this sector, and we should never lose sight of this, regardless of the trade.

This week’s MartBids analysis shows an average 450kg bull weanling making €3.23/kg or €1,454. While it may seem like a great price – and it is – the increased costs of getting this weanling to sale also have to be factored in.

This week, Adam Woods goes into the detail of what it costs to keep an autumn calving suckler cow. It’s a higher cost system, with the total cost of producing an autumn-born weanling now standing at almost €1,400 – so despite the good weanling trade, the margin on producing these weanlings is still extremely tight.

Feed costs and straw stand out as the big costs in this system, with straw now hitting €50/bale in the west of the country. Weanling price is only one part of profit. Production cost is the big one. This week’s Budget 2025 announcement of more funding for the Beef Welfare Scheme is welcome, but more is needed to stem the move away from sucklers.

The move to direct funds to dairy-beef farmers is also welcome. While the amount may be small, it does recognise the important role that dairy-beef farmers play in rearing stock from the Irish dairy herd. For a sustainable dairy industry, Ireland must also have a sustainable beef industry. They go hand-in-hand.