Irish dairy sector to get major investment
The Irish dairy sector is to benefit from €300m in investment over the next three years, it was announced today.
The funding package will include €100m of Government grant aid and is designed to act as a catalyst for the future of the industry.
Agriculture Minister Mary Coughlan said she believed it can take the dairy sector forward in a cohesive and strategic manner and will lead to its sustained development.
The package will enable the State, through Enterprise Ireland, to provide financial assistance in support of capital investment into the marketing and processing of dairy products. In total it will trigger €300m in gross capital investment.
Support will be available toward the cost of construction and acquisition of buildings, new machinery and equipment, and associated costs.
“This much needed injection of capital, with direct support from the Government, will reinvigorate the sector and will go a long way toward realising my commitment to the development of a modern, competitive, innovative market focussed and highly efficient food sector in Ireland,” Ms Coughlan said.
The Miister said that there has been a hugely positive response from the sector to this initiative.
She expressed her confidence that co-ops will approachinvestment decisions in an extremely positive light as a result of it.
Equally farmers should greatly welcome the increased investment in dairy processing with its objective of increasing efficiency and enabling milk producers to secure a fair return, she said.
Enterprise Ireland is to manage the scheme and evaluate the suitability of investment projects submitted for grant assistance. Minister Coughlan will announce full details of the scheme shortly, following state aid clearance from the European Commission.
Irish Farmers Association President Padraig Walshe welcomed the move and called on co-ops to grasp the investment opportunity in the face of collapsing dairy farm incomes and the rundown of EU market supports.
He said rationalisation must strip out processing costs and provide the capacity for merged businesses to develop new products away from EU intervention and low margin markets.
“This major industry investment must also involve funding from co-ops’ own resources and the Irish Dairy Board in order to kick-start a major rationalisation programme,” he added.
