Talks may not prevent Irish Sugar shutdown

Last-minute talks between unions at Irish Sugar and beet suppliers taking place this afternoon may be too late to prevent the…

Last-minute talks between unions at Irish Sugar and beet suppliers taking place this afternoon may be too late to prevent the closure of the company’s Mallow, Co Cork, plant this evening.

The closure will take place if a meeting between unions and the Irish Farmers’ Association (IFA) that began this morning fail to produce a formula to coax management to enter talks over the price paid to farmers for their beet.

However, following the closure of Irish Sugar’s Carlow plant yesterday, a gradual shutdown of the Mallow plant is already under way, and the company has indicated supplies would need to have been resumed by tomorrow morning to keep the plant open.

About 650 of the company's 750 employees will be out of work if the a new proposal does not emerge by the end of the day.

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Labour Party TD for South Kildare Mr Jack Wall has called on the Minister of Agriculture, Mr Walsh, who is in Doha at the World Trade Organisation meeting, to intervene in the dispute.

"He has a key role to play in defusing the situation by calling for immediate discussions betwen beet farmers an company management. The grievances of beet farmers must be addressed immediately, while ensuring that Greencore can still run a profitable operation," he said.

Irish Sugar maintain that only a resumption of supplies by tomorrow morning can avert the closure in Mallow.

"If growers resume supply before then [Tuesday] with a guarantee of continuous supply and a serious engagement with Irish Sugar in regard to expert independent price adjudication, farmers will be able to resume delivery of beet," said Irish Sugar chief executive Dr Sean Brady.

The IFA is demanding that Irish Sugar, a subsidiary of Greencore, pays an extra £1 per tonne for beet. Farmers say they are receiving 10 per cent less for their produce compared to last year.

But management have refused to negotiate, claiming the farmers are in breach of contract and have described the action as "unlawful".

"There is a mood amongst growers to go the last mile for a settlement and they are prepared to consider a realistic price increase offer from Greencore to take account of the growers’ rising costs of production," IFA President Mr Tom Parlon said last week.

Over 500 farmers and their families demonstrated outside Irish Sugar’s plant in Co Carlow on Saturday. The following day the plant was closed after the company said there was no beet to process.

About one-third of this year’s estimated £60 million harvest has already been supplied, and the company has warned farmers production will not continue until there is a reliable supply of beet.

"Once the factories are closed down we will not be able to resume operation until an uninterrupted supply of beet is guaranteed", said Dr Brady.

"However, even if such a guarantee is given it will be some time before the factories can be made ready to accept beet again," he added.