The decision by Dairygold to close its pig slaughter line was a commercial decision made in the wider context of Dairygold operations. Since the announcement of the Galtee closure my Department has maintained regular contact with IFA, Enterprise Ireland and other pig processors with a view to ensuring that a seamless and streamlined transition of the producer/processing supply chain would be established. There is agreement amongst the main processing entities and by Enterprise Ireland that sufficient processing capacity is available in the country to absorb the surplus that will arise from this closure. It is critical that every effort is made to ensure a smooth and orderly transition of the Galtee supply base. This is critical to the future profitability of the entire pig processing chain and will ensure that the transition is managed in the shortest possible timescale and with the best possible outcome for all concerned.
The Prospectus study on the pig industry, published in 2000, concluded that there was serious over-capacity in the pig slaughter sector and that this burden of capacity was causing inefficiencies. It recommended that rationalisation of existing slaughter capacity must be undertaken if primary processing in Ireland were to remain competitive. This would mean that excess capacity must be removed by plant closures with a commensurate increase in capacity utilisation of the remaining plants. An improved competitive structure would allow the sector to better cope with competition on the home and export markets while maintaining viable and profitable outlets the pig producers and improve Ireland's capacity to maximise the production of top quality products at competitive prices.