Food giant criticised for closing butter plant

FOOD giant Kerry Group was criticised last night for deciding to shut a sophisticated butter making plant, resulting in the loss of 29 jobs.

Staff at the hi-tech former Breeo Foods facility in Mitchelstown, in north Cork, were told yesterday that production there will cease within 30 days.

It follows a six-week review of operations sparked by the takeover by Kerry of Breeo Foods earlier this year.

Production will be consolidated at the Kerry Group’s large production facility in Listowel, Co Kerry.

The Cork staff, who make the brand leader Dairygold butter using the unique churning production method, as well as several other spreads such as Dairygold Light and Omega, were devastated.

Some have almost 40 years’ service at the plant, which they said has had up to €16 million spent on computerisation in recent years, making it one of the most sophisticated plants of its kind in Europe.

Several were in tears after the announcement was made. Workers said the Kerry Group was putting profit before people.

“We were hoping the plant would be saved. People had speculated that the plant might be closed, but you don’t believe it until you hear it yourself,” one said.

“In four weeks it will be gone. And the redundancy package of 6.6 weeks for every year is a 20-year-old-deal,” another said. “They have taken the butter and thrown the staff in the gutter.”

A spokesman for the Kerry Group said the decision was taken with regret following the review.

It determined that the best option is to consolidate production in Listowel, he said.

“We have to maximise efficiencies and compete in a competitive consumer marketplace and regrettably this was the outcome of the review.”

He said redeployment options had been looked at but that nothing has been identified yet.

Consultation with staff and unions on redundancy and pension arrangements will take place over the coming weeks.

Local Fianna Fáil TD Ned O’Keeffe launched a blistering attack on the Kerry Group last night.

“This announcement is absolutely catastrophic for the town,” he said.

“I would be quite critical of the Kerry Group. All they are interested in is their shareholders, and making profit at the expense of workers.

“We are seeing too much of this in business and banking.”

The Kerry Group was given the green light in March to acquire Breeo Foods as part of a €140m deal.

The High Court overturned the Competition Authority’s refusal to permit the deal on grounds it would not substantially lessen competition in the Irish markets for rashers, non-poultry cooked meats and processed cheese.

The acquisition involved transferring from Dairygold to Kerry the consumer foods division of Reox, a number of properties, including plants at Mitchelstown, and Tallaght, and the intellectual property rights of its business and assets, including some 225 trademarks.