August 6, 2020

Chinese-backed beef plant expansion plan rejected by Irish gov't; farmers question move

The proposed €40-million (US$47.4-million) expansion of a beef plant in County Offaly, Ireland, may not push through after the government denied the application for residency [RA1] of the Chinese investors behind the project, Farming Independent reports.

The government's move was questioned by former Agriculture Minister Barry Cowen, who claimed that the government's reason for rejecting the investors' application was that the development of additional plants was not a government policy.

The proposed investment had been approved by the County Council of Offaly, which would benefit from 150 permanent jobs. The plant would have catered to the Asian markets.

Tim Cullinan, president of the Irish Farmers' Association (IFA), called on the government to clarify its position. "We badly need new entrants in the sector to shake things up. We see cattle being processed in Northern Ireland at far higher prices than here, and higher prices being paid for finished stock in marts. It is clear that we need more competition", he was quoted as saying in the report.

Edmund Graham, chairman of Irish Cattle and Sheep Farmers' Association (ICSA) beef, asked Justice Minister Helen McEntee to urgently review the "baffling decision" to refuse an application from the investors under the Immigrant Investor Programme.

"I am appalled that the committee took it on themselves to determine that getting a meat plant up and running, with a specific objective of building exports to Asia, was somehow contrary to government policy", Graham said in a press release issued by ICSA.

"This is a totally unacceptable decision which undermines competition in a sector where farmers are utterly frustrated at the closed shop nature of beef processing. The committee has gone well beyond its remit in referring to government policy to rationalise beef processing", he added.