Sugar beet growers in plea over compensation

Sugar beet growers today urged the Government to reject demands by Greencore management for millions of euro in compensation for the closure of the Carlow plant.

Describing the claim as spurious, Irish Farmers’ Association president Padraig Walshe said the firm could not have it both ways – closing the plant to cut costs and then demanding compensation.

Greencore shut the Carlow plan in 2005 with the loss 320 jobs months before the European Commission published proposals on reform on the industry which called for drastic price cuts.

Mr Walshe said: “The decision to select Carlow for closure was driven by the development potential of the 300-acre site and its proximity to Dublin.”

Sugar beet growers gathered outside the Greencore AGM in Dublin today to protest and the IFA boss claimed Greencore chief executive David Dilger was on public record stating: “Our primary focus is not on compensation. Compensation is really of no interest to us.”

Mr Walshe went on: “Mr Dilger cannot have it both ways and now come back looking for compensation.”

The IFA has called for beet growers to be given €106m of the available EU compensation resulting from the shutdown of the sugar industry here. But at present only 10%, €14.5m, is being set aside for them.

A study of the closure by independent consultants, Deloitte, suggested farmers should get €106m out of the €145m compensation package.

Greencore has one remaining sugar plant at Mallow in Co Cork after the Carlow plant was closed early last year with the loss of 190 full-time and 130 seasonal jobs. A decision has yet to be made on whether the Mallow plant will continue operating for another year.

If the plant closes the country’s 3,700 sugar beet growers will be forced to stop production or sell their product on a cheaper market.