Dairygold says Galtee is Irish pigmeat
The assurance was given following the co-op's decision to end primary pigmeat processing, resulting in fears it would use imports for its brands.
Dairygold said it would grow and expand the highly successful Galtee brand and would be a substantial buyer of pigmeat from other Irish processors which can supply top quality meats at a competitive cost.
The co-op also signalled that more painful decisions are on the way as it continues to restructure the €1 billion-a-year turnover business.
The IFA Pigs Committee chairman Pat O'Keeffe described Galtee's decision to close its slaughtering facility as "unplanned and extremely poorly timed." and showed a serious lack of respect for the suppliers who had supported its development over two decades.
"It is not acceptable that a factory that was put there with large amounts of State aid in the late 80s would be allowed to turn its back on this sector without giving it a second thought. It is clear that while there have been discussions on this issue with other processors and outside agencies, the Galtee management did not consider it necessary or worthwhile to consult with or forewarn its suppliers, who are also shareholders, before taking this drastic action," he said.
Dairygold chief executive Jerry Henchy said the closure of its primary pig processing operations, despite the difficulties presented, will help to strengthen the market for Irish pig producers by facilitating the development of higher-capacity slaughter plants in Ireland, improve efficiencies of scale and reduce unit processing cost.
"Dairygold faces issues with its operating cost base across the entirety of its business. The first steps to correcting this occurred in 2003. Now, we continue to review and re-engineer all areas of operation at all levels in 2004.
"For example, staff costs in Dairygold's consumer foods business, under current structures, are running 10% higher than the Irish industry norm and 25% higher than is known to apply in both leading Northern Ireland and British competitor suppliers.
"No business can sustain ongoing production or expand to exploit market opportunities if its cost base is uncompetitive.
"Dairygold is now addressing this issue across all its manufacturing facilities as part of an ongoing recovery programme and is working to bring its cost base into line with industry and market norms."
Mr Henchy said there were a lot of other painful decisions that needed to be taken in other parts of the business to ensure that Dairygold has the most efficient means of processing raw materials.
Former Food Minister Ned O'Keeffe said Dairygold's claim there was 25% overcapacity in the pigmeat industry was plucked out of the air to justify what it was trying to do.
He said he had frequently called for country of origin labelling on all foodstuffs. Consumers was being ripped off and Ireland had become the dumping ground of foreign imports.
"Denmark will not import anything. Ireland imports something like 40,000 tonnes of pigmeat. Irish pig prices are practically the lowest in Europe," he said.
Labour TD Joe Sherlock said the Galtee brand must be retained with 100% Irish pigmeat content.
