Revived sugar industry ‘will create 300 jobs and generate €250m’
Co-owner of Country Crest, Mr Hoey said the abolition of quotas will put Ireland back on the investment map for overseas chocolate crumb manu-facturers, confectioners, and drinks companies. Many had been put off investing here by the heavy cost of importing sugar.
“This gives the sector great clarity,” said Mr Hoey. “Simon Coveney and his colleagues have done a fantastic job; it is now up to us to deliver. We are delighted with the confirmation of 2017 as the date for the abolition of quotas. It will take us that long in any case to get the plant up and running.
“We are talking with a number of county councils, and our number one priority now is to procure a site. We have to have that nailed down by the end of the summer. We have serious interest from the financial institutions and a lot of patriotic Irish investors.”
Acting on behalf of the Beet Ireland consortium, financial services firm Cantor Fitzgerald already has backers in place for the €350m-€400m required to fund the creation of a sugar plant. A number of sites for the plant have been mooted, including the former Lisheen Mines in Co Tipperary.
Mr Hoey said the group’s sole focus now is to drive on with the revival plan.
“The removal of current restrictions placed on Ireland since the introduction of the 2006 EU Sugar Reform Regime was the challenge facing the Irish Government,” said Mr Hoey. “The 2017 new market situation will now allow the ongoing planning for the redevelopment of the Irish sugar industry to continue with absolute certainty.
“The redevelopment of the Irish sugar industry will be a major economic stimulus for Ireland and, in particular, for the agri-food sector. Beet Ireland has worked with the Irish Government over the last two years to bring about this new policy framework. The Beet Ireland initiative has the potential to generate annual turnover in the region of €250m and create to up 3,000 jobs across farming, construction, and ancillary services.”
MEP Mairead McGuinness said the 2017 abolition gives Ireland the opportunity to re-establish the sugar industry. However, she warned that there remains some outstanding issues, such as the capping of payments, moving money between pillar one and pillar two, and other issues linked with the EU budget agreement (MFF).
Robert Guichard, president of the EU-wide industry group European Sugar Users, also welcomed the compromise found between the EU institutions. The group’s members includes the likes of Coca-Cola, Kraft Foods, and the Kellogg company.
“The end of sugar production quotas in 2017 will enable the supply chain to operate in a more market-oriented environment. This is an important step in achieving supply security, which is a prerequisite for economic growth. It will also allow the EU sugar sector to play an increasingly important role on the world market,” Mr Guichard said.
The Beet Ireland consortium of farmers and suppliers now plans to gain traction for its plans to rejuvenate the Irish sugar industry.
Irish sugar production ceased in 2006 with the closure of the Mallow plant operated by Greencore. Ireland imports about €230m worth of sugar a year. German firm Nordzucker acquired the rights to Ireland’s biggest sugar brand, Siucra, in 2009.
Agriculture Minister Simon Coveney has met with representatives of both Beet Ireland and the Irish Sugar Biorefinery Group, a group led by a number of former Greencore executives and chaired by Chris Comerford. Both have presented detailed plans to Mr Coveney who, it is believed, has suggested the two groups join forces.
“There will only be one plant,” Mr Hoey confirmed. “There would never be a need for two plants.”
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