Poultry trade ‘must face up to severe price competition’
The decision by Castlemahon, owned by O’Kane’s Poultry, Ballymena, Co Antrim, followed Kerry Group’s earlier announcement that it is to close Kantoher chicken processing plant, also in west Limerick, with the loss of 140 jobs.
Castlemahon, which processed about 10 million chickens last year, accounting for 15% of the national throughput, has indicated that it will retain 260 full-time jobs. The job losses are part of a major company restructuring programme designed to improve its cost base and to secure its future operation.
Limerick West Fianna Fáil TD John Cregan, who raised the issue in a Dáil adjournment debate, said the area has taken a proverbial hammering regarding jobs.
Every effort must be made by the relevant ministers and appropriate State agencies to attract and support alternative employment, he said. Minister of State John Browne said the poultry industry is a competitive sector due to the increased volumes of poultry meat imported from low-cost countries outside the EU.
Yet, the volumes of poultry produced in Ireland have remained at satisfactory levels for both producers and processors, with an increase of 4% in 2004. The poultry and egg sector is an important part of the overall agri-food industry, with a farmgate value of €150m. The sector provides valuable employment, supplying quality products to the domestic and export market.
Last year, some 66 million chickens and 10 million birds of other species were slaughtered, maintaining high level continuity of production in the face of increased competition from imported products. “Despite increased import penetration, the poultry sector is a net exporter, when the valuable processed products sector is taken into account, contributing €244m to our balance of payments.
Mr Browne said the Castlemahon announcement is aimed at strengthening its cost competitiveness and placing it in a better position to adapt to the market environment.
