The heads of the four cooperatives estimate that joint sales and services will exceed 90 million euros per year.
The members of the Agris, Icos, Coelplan and Aira cooperatives endorsed the merger agreement that the governing councils had agreed three weeks ago. The name of the new cooperative will be Aira, which will become a first-grade cooperative instead of the second-grade cooperative it currently has. In the initial agreement, the entry of Leira de Paradela was foreseen, but its members rejected the merger. It was by far the smallest of all the companies, so its exit is not a problem for the operation. The new company will integrate more than 2,800 farmers and stockbreeders with a workforce of more than 220 employees, distributed in 15 work centers.
The volume of feed to be marketed exceeds 150,000 tons and the amount of milk produced is close to 100 million liters. The combined sales and services will result in a turnover of over 90 million euros. The main activities to be developed are focused on the milk and meat sectors, in addition to veterinary services, machinery, logistics, fuel, marketing and advisory services.
Negotiations to form this large group whose main activity is in the southern area of Lugo, although it has producers from all over Galicia, began about a year ago. At that time, the heads of the cooperatives that shared the Aira de Taboada feed mill, raised the possibility of carrying out a study on the feasibility of joining into one. The result of the report was so eloquent that they had no doubts and started the merger process immediately.
The idea of the participants in this business merger is that the new Aira will start operating on January 1, 2018. The four cooperatives will keep their 15 work centers intact.
Chantadina Icos votes in favor in a general meeting that also approved the accounts
The largest of the four cooperatives integrated in Aira is Icos from Chantada. Fundamental also in the process of launching in 2008 of the joint feed mill Taboada under the umbrella of the then new second-grade cooperative Aira, the decision of the partners of Icos was basic to know if the merger project would be successful. According to information provided yesterday by the Fornas cooperative, the merger was approved at a general meeting of members held on Thursday, and obtained 228 votes in favor.
The assembly also approved the accounts for 2016 presented by the management, which show a decrease in turnover related to the lower marketing of milk. At the close of 2016, Icos invoiced 43.4 million euros, of which almost 3.4 million euros correspond to services rendered and the rest to the sale of milk, meat, orchard products and merchandise. The milk section was again the one with the highest turnover, but this time it was closely followed by the sale of animal feed.
