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Pictured at the announcement were Bertie O’Leary (Dairygold chairman), Jim Woulfe (chief executive), Minister Richard Bruton TD, Minister Sean Sherlock TD and Michael Cantwell (Enterprise Ireland). Photo: Colm Mahady / Fennells

The Minister for Jobs, Enterprise and Innovation, Mr. Richard Bruton TD, together with the Minister of State for Research and Innovation, Sean Sherlock TD announced Government support this week for a €33 million investment by Dairygold to expand and upgrade its milk processing facilities in Mitchelstown. This investment has been supported by the Department of Jobs, Enterprise and Innovation through Enterprise Ireland.

100 jobs will be created in the construction, installation and commissioning phases of the new processing facilities and will also give rise to sustained employment at the Castlefarm site..

Following the abolition of EU milk quotas in April 2015, Dairygold’s 3,000 milk supplying members have forecast to increase annual milk production by more than 50% by 2020. This equates to an increase of 500 million litres per annum and requires an expansion in Dairygold’s peak processing capacity.

The investment will establish a new six tonne/hour multi-purpose milk drying facility and a variety of infrastructure and plant enhancements at its Castlefarm site in Mitchelstown. It will increase Dairygold’s overall peak processing capacity and represents the conclusion of phase one of the Society’s Processing Capacity Plan to 2020.

When completed the facility will be the Irish Dairy industry’s first post quota infrastructure to become operational, with commissioning scheduled for next year’s peak milk season. All produce from its expanded processing capacity will be destined for export markets.

Speaking about the investment, Chief Executive Jim Woulfe said this is the first phase in Dairygold's post 2015 expansion programme.

"This investment is more than processing expansion - it also improves the energy saving and environmental performance of our Castlefarm operation and builds on the commissioning of the Anerobic Digester effluent plant we commissioned there in 2012. This new facility will provide multi-product processing capability allowing expansion in the supply of a variety of higher value dairy ingredients including those that complement our ambitions for expansion in the Infant Formulae Sector," he said.

Making the announcement, Minister Bruton said the targets set out in the Government’s Action Plan for Jobs, cannot be achieved without innovative, dynamic Irish companies like Dairygold.

Minister Sherlock said the expansion is great news for Cork and the wider Munster area and that Dairgold clearly recognises that innovation is the driving force for future growth.

Enterprise Ireland Head of Food Michael Cantwell said an important element of the investment for both Dairygold and Enterprise Ireland, was the huge emphasis on utilising latest technology to provide a more sustainable processing platform. "This  will result in reduced energy and emissions per litre of milk processed," he said.

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