Talks may avert sugar factory closure

THERE is a definite commitment by the Government and Greencore to continue sugar production in Mallow over the short term, according to the local Development Partnership.
Talks may avert sugar factory closure

It is understood the Partnership has held meetings with Agriculture and Food Minister Mary Coughlan and other interests over the past week on the future of Mallow Sugar Factory.

John McDonnell, chairman, said despite earlier predictions of imminent closure, it is now very clear that there is every reason sugar processing should continue at Mallow over the next two years at least.

"This, of course, implies that an economically viable price is paid to the primary producer and there is no reason to believe that agreement in this cannot be arrived at through negotiations, especially having regard to the very complex pricing mechanisation emanating from the Brussels agreement," he said.

Mr McDonnell said farm leaders have a responsibility to seek the best deal for their members in any such negotiations, but will also be conscious of the very strong opinions of other industry stakeholders such as employees, community, business and political interests in Mallow and wider areas.

"All of these want to see the Mallow plant continues in production over the next two years as a minimum. This would be a welcome boost to the economic and social well being of the area and would in addition provide the opportunity to examine all possible alternative options for the future."

Mr McDonnell said this is a much better option than a divisive scramble for a share of the EU pot of money.

"Such a course may result in very few winners at the end of the day and would also deny a vitally important rural industry the breathing space that is now clearly available to it," he said.

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