Cheese producer plans expansion with €500k

CASHEL Blue Cheese producer J&L Grubb will double its exports to the USA and reinforce its sales routes into Britain, thanks to a new €500,000 fund secured from Ulster Bank.

The funding has also allowed J&L Grubb to construct and furnish a new, state-of-the-art factory premises at Beechmount, Fethard, Co Tipperary.

The company has upgraded its production facility from an old farmhouse-style premises to a new 25,000sq ft factory premises.

While the new facility was completed in December 2010, the new funds will support the aligned export ambitions.

J&L Grubb director Sarah Furno said: “The new funds are pivotal to our drive towards innovative new products, exports and efficiencies.

“We are the largest producer of farmhouse cheese in Ireland and one of the leading producers in Britain.

“With this funding, we can maintain the position of Cashel Blue as a prime brand on shelves in export markets. For instance, around 80% of the cheese sold in the UK is private label [shop’s own] product.

“Our new premises has been given a BRC Grade A [British Retail Certification], which reinforces UK retailer confidence in our product. The €500,000 also made this possible.”

Ms Furno said the company’s ambitious expansion plans may lead to further jobs in the future.

A family-owned business, J&L Grubb currently employs 30 people between the farm and the farmhouse cheese-making facility.

At present, 45% of their product is sold on the Irish market through various retailers including, SuperValu, Tesco, Aldi and Superquinn, along with premium speciality outlets including Sheridans Cheesemongers, Avoca and Fallon & Byrne.

Another 30% of their product is sold in Britain and the rest of Europe, while 20% is sold in US, and 5% is sold throughout the rest of the world.

The plan is to double its exports to the US up to 100 tonnes per annum by the end of 2012.

Sarah Furno attended this week’s Fancy Food Show in Washington DC, where Cashel Blue was again very well received by US food distributors.

The company has major expansion plans for 2012. The plant in Fethard has increased production capacity by 100%. The facility will also ease the development of new “hard cheese” products, blue cheese spread and whey products.

The company’s new facilities also allow for the hosting of small conferences, agri-tourism and education events in their boardroom and lecturing area.

J&L Grubb director Louis Grubb said: “The funding provided by Ulster Bank helped us undertake the major task of building a new facility on a greenfield site and fitting it out with state-of-the-art technology and equipment. New markets can now be approached with confidence and further associated development can be considered.”

For others in the agri-food industry, the €500,000 secured by J&L Grubb also highlights Ulster Bank’s commitment to the sector, signalling a greater disposition to provide funding for the broader expansion ambitions in Irish agri-food.

Ulster Bank’s Business Banking RI managing director Declan Fitzgerald said: “Agriculture was forgotten during the good times, but it is now back centre stage. It will be 15%-20% of Irish GDP over the next few years, and we want to welcome them with open arms.

“They are definitely getting more support from us than they have been getting from traditional agri lenders. We are looking ahead to the abolition of the milk quota era in 2015 and to the ambitions of the Food Harvest 2020 report, and we anticipate that the agri-food sector will become an increasingly important part of our business.”

Mr Fitzgerald said the bank has taken on a number of advisers with PhDs in agri-food studies, who made a number of in-depth presentations at the recent Teagasc Open Day in Moorepark.

Providing finance to the agri-food sector will continue to be a core part of the bank’s business over the coming years.

It also plans to align its lending strategy to other job-producing, labour-intensive sectors.

In relation to J&L Grubb, Declan Fitzgerald said: “They are determined to increase their offering and show clear signs of expansion opportunities. The company’s new facility allows for an increase in production but also supports local commerce and creates employment.”