Dáil Éireann debate -
Tuesday, 17 Dec 1991

Adjournment Debate. - County Limerick Factory Closure.

Mr. Finucane

I am pleased that I have been allowed to raise an issue that is causing a great deal of concern in my constituency. As the Minister is aware, Kantoher Food Products Ltd., of Killeedy, Ballaugh, County Limerick, which has an annual turnover of £14 million was wound up and a liquidator appointed to the company by the High Court. The company employ 130 full-time employees and provide a vital industrial lifeline to the people in the surrounding areas.

The area surrounding Kantoher has a strong dependence on agriculture and this is the most important industrial employer in an area stretching from Tournafulla to Dromcollogher where they draw most of their employees within that catchment area. The liquidator has allowed the company to trade and they are now catering for a boom Christmas trade. The plant was established back in the twenties and the technology used in the processing of chickens and turkeys is one of the most modern in the country.

It is most important for the company to continue to operate and for the liquidator, Mr. John Hyland of accountants Ernst & Young, to engage in discussions with potential clients whose ambition is to continue with the processing of turkeys and chickens in this area. The area received a body blow recently when Kantoher co-operative was taken over and a rationalisation followed with up to 40 jobs being lost. Should anything happen to this plant it would be devastating to the local economy. Many of the workers have firm roots in the area and have taken out mortgage commitments, etc. The likelihood of other suitable jobs being found would be unlikely. Over 40 poultry producers who have shown good faith with this project over the years would also be affected by the present discussions on Kantoher poultry products future. Many of these have borrowed heavily for the provision of broiler houses.

I appeal to the Minister to use all the support of both his office and the Industrial Development Authority to back the liquidator in ensuring that this company are enabled to continue in business for the future.

I would like to compliment the management and workers for the work they have put into this company and I sincerely believe that the high level of skilled workers will be an asset to any suitable employer who is interested in this project and will continue to operate it on an ongoing basis.

Minister of State at the Department of Agriculture and Food (Mr. Walsh)

At the outset, may I thank Deputy Finucane for raising this matter in the House and I am glad to have the opportunity to reply to this question on the liquidation of Kantoher Food Products Ltd.

I share the Deputy's concern at this unfortunate development. It is always sad to see any company getting into difficulties resulting in the appointment of a liquidator. It is particularly so in the case of a company such as Kantoher Food Products Ltd., which had such worth-while ambitions for the poultry meat sector.

Kantoher Food Products Ltd., a wholly-owned subsidiary of Kantoher co-operative, were formed in August 1988 to take over and develop the poultry activities of the co-operative, that is poultry processing, hatchery, egg laying and egg purchasing and processing.

The new company embarked on a modernisation programme to upgrade and expand the poultry facilities and by the end of 1990 had a 10 per cent share of the poultry market with an employment level of about 130. However, it is understood that the company ran into financial difficulties necessitating the appointment of a liquidator. In this regard the Deputy will appreciate that the decision to appoint a liquidator at Kantoher Food Products Ltd. is one over which the Minister for Agriculture and Food has no control.

The liquidation is, as I have said, very regrettable, and one's sympathy must certainly go out to the employees who may lose their jobs. I am also concerned about the poultry producers who supply the company. However, I understand that the liquidator is trading for a short period and there is the possibility that the business and assets may be sold as a going concern thus preserving some if not all of the jobs at the factory and continuing outlets for the breeders.

While the Kantoher situation is unfortunate, I would like to say that the poultry industry generally is in a sound state. The industry has been expanding and now has a farm-gate value of some £130 million which translates into retail values of about £350 million. The value of poultry and egg exports in 1990 amounted to £34.5 million. Including Kantoher there are 16 poultry slaughterhouses approved to EC standards with a throughput of about 40 million broilers per annum. I am confident that the industry has the basic structure to enable it to maintain and develop its position in the EC and world markets and expand employment.