Pig processing closure ‘right business decision’
Management told a delegation from the IFA at a three-hour meeting that this was due to the co-op’s lack of scale and the high labour cost in its pig meat processing operations.
The co-op said it was the right business decision as it was no longer in a position to sustain an operation which was not competitive. It called on the IFA and pig producers to direct their focus towards managing the change and transition process.
Chief executive Jerry Henchy said Dairygold will work with pig producers to ensure the smooth transition of pig slaughter throughput to other plants.
“It is important that producers who have been critical of Dairygold for its exit of primary pig processing, should look positively at the potential for the added value growth of the sector in Ireland rather than just on the physical location aspect of where pigs are to be slaughtered,” he said.
Mr Henchy said Dairygold remains committed to buying Irish pork for its consumer meats products and will remain a substantial buyer of Irish pig meat.
He said the co-op’s exit from primary pig processing will allow producers to sell their pigs to Dairygold, albeit indirectly through other slaughter plants.
“The decision on the closure of primary pig processing operations is the right business decision for Dairygold and it is a decision which will prove of benefit not just to the co-op and retained sustainable employment in its consumer foods operations, but also to pig producers and the sector overall,” he said.
IFA deputy president Ruaidhrí Deasy said the IFA asked Dairygold, which is Ireland’s largest farmer co-op, to seriously reconsider its earlier decision to withdraw from the pig meat business.
“Dairygold has a strong track record of over 40 years’ involvement in the pig industry with the Galtee brand and it would be wrong to see the link with pig producers broken, especially when management have confirmed that the business is profitable,” he said.
Mr Deasy said all options should now be considered including the possibility of a new buyer for the plant, to operate it as a going concern, especially as management appear determined to get rid of it at all costs.
IFA Pigs Committee chairman Pat O’Keeffe said the closure of the business would be seriously detrimental to pig producers.
