For a variety of reasons the marketing area of the Irish beef processing sector needs to be strengthened. Involvement of more firms with experience in marketing and with the financial strength necessary to develop markets would help significantly in this regard. The larger co-ops, while their core business is in dairying, have expanded into other areas including meat processing. They have developed substantial commercial markets abroad for their existing products and have put in place distribution networks to service those markets. Because of this and because of their financial strength, they are well placed to sell other food products, including beef.
Prior to the sale of the assets of UMP, I encouraged the larger co-ops to bid for these assets, for the reasons which I have just outlined. I believe that, as a result of the acquisition of the assets by Avonmore and Dairygold, the prospects for employment at the former UMP plants in the longer term is now more secure than ever because of the declared objective of the two new owners to develop the business and because of their financial and marketing ability to achieve that objective.
