A looming global sugar shortage is reviving memories of Ireland's once-flourishing beet processing industry
Mallow Sugar Factory was the last of the sugar plants to be closed in 2006, despite strong opposition locally and nationally by those who pointed out that the industry was efficient, profitable and had a future.
A looming shortage of sugar on global markets has revived bitter memories of how the once flourishing beet processing industry in Ireland was shut down with knock-on impacts on rural and urban communities.
Over a period of 80 years from 1926, generations of rural and urban families were involved in what was a remarkable partnership that included the State through the Irish Sugar Company before it was privatised and taken over by Greencore in 1991.
Beet growers, farmers, permanent and seasonal workers, haulage contractors, and other service providers were involved. Freight trains were even used to transport beet to the factories during the annual round-the-clock processing campaigns.
Tonnes of white sugar were produced annually from beet grown on contract countrywide and processed at four strategically located factories in Carlow, Mallow, Thurles and Tuam.
The Sugar Company was a landmark industry that was developed out of the growing pains of the infant State and later diversified into many different enterprises.
It set up the vegetable processing company, Erin Foods, and became the economic foundation of many urban and rural areas.
Sugar beet was being grown in 22 counties, vegetables in 14 and potatoes in 12 when the company celebrated its golden jubilee in 1976.
It was providing 10,000 jobs and exporting products including agricultural machinery to 40 countries at that time.
Mallow Sugar Factory was the last of the sugar plants to be closed in 2006, despite strong opposition locally and nationally by those who pointed out that the industry was efficient, profitable and had a future.
Greencore’s decision to close the factory followed radical proposals by the European Union to reform the sugar regime across member states to eliminate unprofitable production. But it left a sour taste and a lingering blame game.
A report by the EU Court of Auditors in 2011 claimed the decision had been based on out-of-date figures concerning economic viability and may have been unnecessary. The Department of Agriculture, Fisheries and Food strongly denied the claim.
Now, that whole issue is being recalled with reports that India is preparing to ban sugar exports next month for the first time in seven years to reserve supplies for its own population of around 1.4 billion people.
Reports from New Delhi predict that India’s sugar production could fall by 3.3% in 2023 because of limited rainfall in key growing regions, coupled with exceptionally hot weather in the first half of the year.
India is one of the world’s largest sugar producers and any decision it might take to prohibit exports would have a knock-on impact in other countries.
Ireland is not directly affected by any such ban as the country’s sugar imports come from other European Union member states and the United Kingdom.
But shortages in these countries could have a bearing on the prices that consumers here pay for their 1lb of sugar on the supermarket shelves. Shoppers have already noticed rising costs.
With sugar a key ingredient of other commodities, there are also predictions that chocolate, confectionery, fizzy drinks, and other products could become more expensive.
Agriculture, Food and Marine Minister Charlie McConalogue was asked by Deputy Clare Kirrane in the Dáil in June what consideration he had given to re-establishing sugar beet processing in the State.
He said the EU introduced a restructuring mechanism in 2006 with the intention to reduce overall production of sugar, noting the then global oversupply.
Ireland secured €353 million as part of the reform package with some €220 million being distributed to beet growers and a further €6 million to machinery contractors in the sector.
As part of the reform of the Common Agricultural Policy, agreement was secured on the abolition of sugar quotas from September 30, 2017.
From that date, investors in the European Union, including Ireland, were free to put money into sugar-producing capacity if they wished.
Minister McConalogue said some groups had expressed an interest in the redevelopment of the sugar sector. Two of them prepared desktop feasibility studies.
In their findings, both proposals sought to develop a new sugar and bio-ethanol production facility with estimated capital costs at that time of between €250 million and €400 million.
“In 2018, I understand that Beet Ireland sought to engage with interested growers in an equity partnership proposal to develop a sugar processing facility in the south-east. However, the group announced in June 2019 that it was postponing its plans,” he said.
Minister McConalogue said any proposals to re-establish sugar production must be industry-led and supported by a robust business case that would attract the substantial level of funding required to support and underpin a new start-up of the scale required to re-establish the sector in Ireland.
He said the importance of the tillage sector is recognised in the Food Vision 2030 strategy and in the Climate Action Plan 2023 where a target is set out to increase the area in tillage to 400,000 hectares.
This is well founded given that the sector is one of the most carbon-efficient sectors of Irish agriculture. To help achieve this target, he recently established the Food Vision 2030 Tillage Group which had its first meeting in May.
It brings together all relevant stakeholders to set out a roadmap for the sustainable growth and development of the sector to 2030.
“I have tasked the group with providing a detailed plan and recommendations by the final quarter of this year,” he said.
Sean Sherlock, TD, also recalled in the Dáil last June that Irish Sugar, once a stalwart and part of the backbone of Irish industrial policy, was sold to Greencore and privatised.
“We lost the sugar industry and now the Greencore site in Mallow is up for sale,” he said, calling on the State to acquire it.
Deputy Sherlock said he saw no reason why the site could not be used as a key reference point for alternative energy creation.
