Dairygold lifts capacity with €117m investment in Cork

Dairygold’s €117m investment in its Mallow and Mitchelstown sites will give the north Cork co-op the processing capacity it needs for next year’s abolition of EU milk quota restrictions, said the company’s chief executive, Jim Woulfe.

Taoiseach Enda Kenny laid the foundation stone as Dairygold broke ground on the €83.5m ‘regeneration’ of its milk plant at Mallow, which will create 115 new full-time jobs in operations as well as 400 temporary construction jobs. He also performed the official opening of Dairygold’s newly- completed €33.5m upgrade of its Castlefarm dairy plant in Mitchelstown.

Dairygold’s enlarged facilities will produce dairy ingredient milk powders of infant milk formula standards. It is understood that industry customers are already in place to take on the co-op’s expanded output. Its 3,000 suppliers expect their milk output to grow by 60% by 2020.

Dairygold is Ireland’s largest farmer-owned dairy co-op, processing over 960 million litres (20% of Ireland’s milk pool) in 2013; its milk being used to produce cheese and dairy ingredients for export to more than 50 countries.

The newly-upgraded Mitchelstown plant alone can now process 1.3m litres of milk a day, or 9m litres per week.

“Today is e-day, the day when the State moves away from cheque payments to electronic payments,” said Jim Woulfe. “But for us here in Dairygold and across our catchment area in Munster, today is D-day, or Dairy Day — the day when we confidently declare that Dairygold is not only ready to process all the milk that our farmer suppliers care to produce, but we will add more value to it through the investments we have made.

“This new facility in Mallow is essential to have the capacity in place to process additional milk and to capitalise on the opportunities which next year’s removal of milk quota restrictions will provide.”

Taoiseach Enda Kenny said: “The Government is highly supportive of the agri -food sector as it is Ireland’s largest indigenous industry. The Dairygold investment is building on a strong platform of dairy excellence to create world-class dairy manufacturing capability in Ireland’s dairy heartland.”

Meanwhile, The Irish Dairy Board is to build a Centre of Excellence for butter production and packing in Mitchelstown, Co Cork.

The new facility is a milestone in the IDB’s strategy to grow the iconic Kerrygold brand and is expected to create 50 jobs directly and provide a major boost to the local economy.

The development proposes to establish a centre of excellence adjacent to the existing Dairygold milk processing complex at Castlefarm, Mitchelstown.