Globalisation ‘a challenge to producers’

AS markets become global, producers will need scale to maintain relative bargaining positions, Glanbia group managing director John Moloney said yesterday.

He was speaking at a Waterford Chamber of Commerce breakfast briefing on the future of Glanbia, the €1.8 billion turnover international dairy, consumer foods and food ingredients company.

It has 5,300 farmer suppliers and 4,000 employees in Ireland, the United States, Britain, Germany, Africa and Central America.

Mr Moloney said it is generally predicted there will be ten major global food retailers by 2015, three major global brands Kraft, Unilever and Nestlé and the discounting retail model will be dominant.

Glanbia's focus in 2005 will be on the completion of major strategic dairy processing investments in New Mexico and Nigeria and on development initiatives that build scale and diversity and drive cost efficiencies that enhance performance.

Mr Moloney told the briefing, held in association with the Irish Examiner and Ulster Bank, that the trading outlook across the group held some challenges, particularly managing the impact of EU dairy sector reform.

"However, with our strong market positions and evolving nutritional business, the group is well positioned for growth," he said.