July 31, 2006

Irish dairy industry receives EUR 300 million lifeline
 

The Irish dairy sector is to benefit from EUR300 million in investment over the next three years, Agriculture Minister Mary Coughlan announced Sunday (Jul 30).

One-third of the amount would be in the form of government grants.

Coughlan said the money would take the dairy sector forward in a cohesive and strategic manner and would lead to its sustained development.

The package would allow the State, through Enterprise Ireland, to provide financial assistance into the marketing and processing of dairy products.

Some of the funding would also go toward the cost of construction and acquisition of buildings, new machinery and equipment.

The minister expressed her confidence that co-ops will approach investment decisions in an extremely positive light as a result of it.

Enterprise Ireland is to manage the scheme and evaluate the suitability of investment projects submitted for grant assistance.

Full details of the scheme would be available shortly, after clearance from the European Commission.

Irish Farmers Association President Padraig Walshe welcomed the move and called on co-ops to grasp the investment opportunity, saying rationalization would strip out processing costs and allow businesses to develop new products free from EU intervention.