GREENCORE SHAREHOLDERS approved the sale of the food company’s malt business yesterday despite angry protests by about 50 grain farmers whose contracts have been axed in preparation for the disposal.
There were heated scenes off Grafton Street yesterday as malting barley growers picketed the Westbury Hotel where the Greencore egm took place. Inside at the meeting, which was held to approve the sale of Greencore Malt to French co-operative Axéréal, irate farmer-shareholders accused management – at length – of putting growers “on the scrapheap”, and “walking out on Irish agriculture”.
Irish Farmers’ Association president John Bryan said nearly half the 1,000 growers had had their contracts terminated without promise of redress. “Many of these growers have invested heavily in machinery and in tillage ground to fulfil their contracts with Greencore and now find themselves deeply out of pocket,” he said.
When asked about the entitlement of farmers to compensation for the loss of contracts, Greencore chairman Ned Sullivan said that “intensive consultations” are ongoing between the company and the Irish Farmers’ Association grain committee. However, several disgruntled shareholders dismissed this claim. “It is a sham to say that there have been any consultations with growers,” one said.
Before ripping up their voting cards and leaving the meeting in protest, suppliers warned that Axéréal will have a battle on its hands if “this mess is not cleared up” by Greencore.
“The situation has been handled very poorly by Greencore, and has become a very divisive issue among growers on the ground. Greencore must address the problem now, if the new owners are to be welcomed here and enjoy the goodwill and support of Irish farmers,” said Mr Bryan.
Despite the heated protests, the motion to sell Greencore Malt was passed. Mr Sullivan said although it was a “very good business”, the demand for malt had declined and Greencore’s strategy is to focus on the convenience food market in the UK, Europe and the US.
The total consideration for Greencore Malt will be up to €116 million, although once debt, fees and pension deficit funding are factored in, the net consideration will be about €100 million.
