Jobs set to go at cheese factory

GLANBIA is to cease cheddar cheese production at its plant in Kilmeaden, Co Waterford, at the end of the current season with the loss of around 45 jobs.

But it will retain the facility and has pledged to continue to explore alternative specialist cheese production options.

The decision came at a Glanbia plc board meeting yesterday and follows moves to consolidate its cheddar production at two sites.

Jim Bergin, chief executive of Glanbia's Irish Food Ingredients, said the decision is regrettable but inevitable given cost pressures on Irish dairy processing.

"After considering all options the board decided that, from March 2006, Glanbia will consolidate the Kilmeaden cheddar production between its Ballyragget facility and Dairygold Co-operative's site in Mitchelstown," he said.

Forty-one of the 45 people employed at Kilmeaden are seasonal. A consultation process on the closure will begin immediately on the basis of the severance agreement with the majority of the workforce since 1998.

Glanbia said it will continue to collect milk as normal from its Waterford milk suppliers with no additional cost or inconvenience.

In addition, the Kilmeaden brand will continue to be made by Glanbia at its Ballyragget facility using the same recipe as before.

The Kilmeaden site currently processes 14,000 tonnes of cheddar each year.

Over 12,000 tonnes (95%) is commodity cheddar for export markets with the remaining 5% used in the branded product.

Glanbia agreed contract manufacturing for butter and other products with Dairygold last February.

At that time Glanbia agreed to expand butter production at Ballyragget to maximise efficiency and Dairygold closed butter plants, with production from both groups consolidating into Ballyragget.