Glanbia Ireland’s policy on new entrant milk suppliers is under review by the processor’s board.
The board recently approved 31 new entrants for start-up in spring 2020, the processing entity confirmed.
Meanwhile, since the abolition of milk quotas, there have been 219 new entrants to milk production in the Glanbia Ireland catchment area; with a similar number of retirements from milk production in the same period.
Glanbia has been investing in expansion at two facilities, with a cheese factory currently being built on a greenfield site in Portlaoise. In addition, a new dryer was installed – its third such machine – at its Belview plant.
Other processors have been making moves – Aurivo recently opened its new €6 million investment in Killygordon, Co. Donegal, which the co-op says will double the processing capacity of its milk plant there, with a new spray dryer facility opened in Ballaghaderreen, Co. Roscommon, in July.
Carbery and Arrabawn are also investing in additional processing facilities.
‘Economic growth’
Commenting on the recent expansion of the dairy sector in Ireland, a representative for Dairy Industry Ireland (DII) said: “The Irish dairy industry has gone through phenomenal growth in recent times.
“We have gone from 5.4 billion litres to well over eight billion litres in four years and this has delivered economic growth all around the island.
In that four years almost an extra €1 billion euro has been added to the annual milk cheque of farmers across Ireland.
“To facilitate this growth, the industry has had to invest heavily, not only in state-of-the-art factories to process this supply, but also in routes to market for the product.”
It was added that the new facilities are continuing to come on stream and the industry is busy matching supply to the processing capacity.
The representative noted that a “period of huge political change” is currently at play with Brexit, Common Agricultural Policy (CAP) reform and environmental obligations all needing to be clarified.
However, the spokesperson said:
It is right that the industry takes a strategic view on all decisions to ensure the maximum return is ensured to the farmer supplier as well as the processor.
“The industry is confident that this extra growth will be catered and planned for and companies are in constant contact with their boards and members to ensure that this is done in a sustainable manner for all parties.”