‘Greencore completely misread EU sugar regime’

THE blame for the demise of the Irish sugar industry rested with Greencore, the Irish Farmers Association claimed last night.

Its president Padraig Walshe accused Greencore, over the past 10 years, of draining over 300 million in profits from Irish Sugar without planning for a viable future for the industry.

“Greencore completely misread the EU sugar regime and the reforms of November 2005. Closing the Carlow factory was a fatal misjudgement by Greencore management which has staggered from one crisis to another since,” he said.

But Greencore insisted yesterday it had no alternative to exiting sugar processing in Ireland. The company formally notified the Irish Stock Exchange that its sugar division would not process in 2006 or in any subsequent year.

Envisaging a May closure, Greencore blamed the EU’s extensive review of the sugar regime and environment.

Greencore chief executive David Dilger said: “The board regrets that it has no alternative.

“Since the EU sugar regime change was announced, it has turned an efficient, profitable, operation with dedicated employees into a loss-making processing business with no viable future.”

Greencore insisted the decision of the EU Council of Ministers on November 24, last year, effectively signalled the end of sugar beet growing and processing in Ireland.

The company generated operating profits of approximately 25m from sugar processing in the year ended September 30, 2005. In the current year, operating profits from sugar processing activities are expected to reduce to around €15m.

IFA Sugar Beet Committee chairman Peadar Jordan said Agriculture Minister Mary Coughlan should not give Greencore a cent in compensation.

Sugar beet was worth €80m yearly to growers. It was essential to the incomes of 3,700 specialist growers and their families in the south and east of the country, he said.

But Ms Coughlan, expressing regret, said it was a commercial decision having regard to the current situation on the sugar market.

Ireland East MEP Mairead McGuinness said it was shocking to think that Ireland was the first EU member state to witness the demise of its entire beet growing and processing sector.

“Ever since the commission announced its plans to reform the sugar regime, it was evident that the future of the Irish industry would be in jeopardy, given the severity of the price cuts involved.”