Farmers in the western counties have today received details of the proposed merger between North Connacht Farmers Co-operative (NCF) and Kiltoghert Co-operative.

The proposed new co-operative would have a turnover in the region of £200 million (€254 million) in the current year.

Dairy processing would remain its core activity and the merger should leave it better placed for further development in the region.

The merger of the two co-operative societies, which have been working closely for years, has been recommended unanimously by both boards and is likely to be approved by the farmer shareholders.

The 18,500 shareholders will vote during the first week in September, and if more than the required 75 per cent vote in favour, a second ballot to ratify the decision will be taken a few weeks later.

The two co-operatives are partners, together with the Mid-West Co-operative, in Shannonside Milk Products, the milk processing plant in Ballaghadereen, Co Roscommon. NCF also processes all Kiltoghert's milk supplies.

NCF chief executive, Mr Michael Farrell, will head the management team of the merged co-operative, which will include Mr Pat McGarry, the Kiltoghert chief executive.

NCF reported pre-tax profits of £3 million on a turnover of £172 million last year.

Shareholder funds are approximately £25 million. Kiltoghert's turnover is in the region of £16 million and shareholder funds are around £4 million.