Milking the opportunity: €35m for two dairy innovation centres

A total of €35 million is to be invested by Government and industry in two dairy research and innovation centres in Limerick and Cork.

The projects aim to exploit growth opportunities presented by the abolition of milk quotas in March and to position Ireland as a world leader in dairy innovation.

Some €25 million has been earmarked for the construction of a new Dairy Processing Technology Centre (DPTC) at the University of Limerick, which will house 52 researchers when fully operational.

The initiative will see nine research institutions and eight industrial producers collaborate to develop new products and technologies.

Up to €9 million of the costs will be funded by a consortium of industry players, which includes Dairygold, Glanbia and Kerry, with the remainder coming from Government via Enterprise Ireland.

A further €10 million will go towards the upgrade of Teagasc’s food technology plant in Fermoy, Co Cork, which has been run on a pilot basis up to now.

The money will be used to expand and modernise the Moorepark Technology centre which can be rented by processors to testing new dairy processes and products.

Some €4 million of the project is being funded by a consortium of dairy businesses.

The investments were announced at an event at the Arrabawn Co-Op in Tipperary this morning, attended by Minister for Jobs, Enterprise and Innovation Richard Bruton and Minister for Agriculture Simon Coveney.

Mr Bruton said the removal of milk quotas offered huge opportunities “that we must exploit in a planned and strategic way in order to support jobs growth”.

Mr Coveney said investing in product and process innovation contributes to improved competitiveness, and helps to mitigate the impact of commodity price volatility on operators along the supply chain, including farmers.

“Ultimately, this kind of investment can build the kind reputation for excellence in all things dairy that creates a platform not only for export growth, but also for inward investment by major global players in the food industry,” he added.

The newly appointed chief executive of the DPTC Padraig McPhillips said the centre was based on a collaborative model in which the best research talent in Ireland relevant to industry needs is brought together with the dairy sector to solve strategic research and innovation needs.

The industry consortium backing the centre involves eight companies including Arrabawn Co-op, Aurivo, Carbery, Dairygold, Glanbia, Kerry, Lakeland Dairies and Tipperary Co-Op.

Cumulatively, the companies process 85 per cent of Ireland’s milk pool, produce €2.5 billion of Ireland’s annual dairy exports and provide over 25,000 direct and indirect jobs.

The nine research organisations taking part are University of Limerick, Teagasc, University College Cork, University College Dublin, NUI Galway, Dublin City University, Trinity College Dublin, Dublin Institute of Technology, Institute of Technology Tallaght and Cork Institute of Technology.

Dan MacSweeney, chief executive of Carbery Group and chairman of the Irish Dairy Industries Association said “The DPTC will be a critical agent in realising the opportunity presented by the abolition of the milk quotas by providing a dedicated public-private partnership investment in a world class dairy processing research and capability centre.”

The Moorepark Technology centre companies are Arrabawn Co-op, Aurivo, Carbery, Dairygold, Glanbia, the Irish Dairy Board, Kerry, North Cork Co-Op and Tipperary Co-Op.