Return of sugar beet processing in Ireland unlikely, says agriculture minister

"As somebody who was born and raised in south Kildare, whose uncle was a sugar beet farmer for many years, I greatly lament the loss of the sugar beet industry," said agriculture minister Martin Heydon, as he announced a scheme to establish up to four new flour mills across the country.

Agriculture minister Martin Heydon; enterprise minister Peter Burke; and minister of state with special responsibility for financial services, credit unions and insurance Robert Troy speak to the media outside Bread 41 to discuss the flour mill scheme. Picture: Sam Boal/Collins photos

A return of Ireland's sugar beet processing industry is unlikely, the agriculture minister has said.

Martin Heydon was speaking as the Government announced a scheme to establish up to four new flour mills across the country. That plan will see Government subvention for the establishment of processing facilities to address the cost and challenge of importing flour, which is seen as a strategic weakness in supply chains.

There is only one industrial facility in Ireland, leading to the bakery industry importing 240,000 tonnes of flour a year, with costs having risen since Brexit.

Asked by the Irish Examiner if other processing industries could see similar revitalisation, Mr Heydon said while the closure of Ireland’s sugar beet factories had been a mistake, it was unlikely the sector could return.

The sugar factory in Mallow was the last of four to close in 2006, following those in Carlow, Thurles, and Tuam. Founded in the 1930s, the State-owned Comhlucht Siúicre Éireann was privatised and taken over by Greencore in 1991. 

The sector closed in 2006 following an EU directive on State supports, ending an 80-year link between regional agriculture and manufacturing, and resulting in the loss of over 300 direct jobs. 

A 2011 report by EU auditors found the closure may not have been necessary.

In the 1980s, over 200,000 tonnes of white sugar was produced annually, involving up to 30,000 beet growers. Supplies of sugar beet dwindled to 3,700 farmers by the time the Mallow plant was shut down.

'I thought it was a mistake'

Mr Heydon said his area of south Kildare had been hit by the closure and stressed that as much food as possible would be produced in Ireland.

"As somebody who was born and raised in south Kildare, whose uncle was a sugar beet farmer for many years, I greatly lament the loss of the sugar beet industry," he said. "There was a decision made back in 2006... personally, I thought it was a mistake at that time that we exited the sugar beet industry.

"But when you look at sugar prices across Europe now, the fact that our processing capacity has gone and what it would cost for private industry to build a new sugar plant, I don't see that being a viable option here.

"If you don't produce sugar in Ireland, you can't say your sugar's from Ireland. Obviously, the sugar brand Siúcra is owned by a German company. So we want to make sure we don't lose other sectors like we lost with sugar."

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Enterprise minister Peter Burke said the scheme was expected to create flour-processing capacity of between 60,000 and 80,000 tonnes per year. 

"If we get three or four flour mills nationally, that will be a huge achievement," he said. 

Mr Heydon said an increase in processing ability would attract tillage farmers who had previously been unable to sell their product in Ireland.

Enterprise Ireland will oversee and administer the initiative, and will engage directly with firms considering new or expanded milling operations of scale.