Deadline set to prevent sugar plant closure

A noon deadline has been set for tomorrow by Irish Sugar to prevent the temporary closure of their plant in Mallow, Co Cork.

A noon deadline has been set for tomorrow by Irish Sugar to prevent the temporary closure of their plant in Mallow, Co Cork.

The High Court today granted the company a temporary injunction against the Irish Farmers Association (IFA) and growers who are refusing to supply beet to its two plants in a dispute over prices.

However, following the closure of Irish Sugar’s Carlow plant yesterday, the gradual shutdown of the Mallow plant continues but a spokesman for the company said if supplies resumed by around noon tomorrow the plant could remain open.

The IFA responded this evening by saying they would present their case at a full hearing in the High Court on Thursday.

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IFA President Mr Tom Parlon expressed his disappointment at the injunction and accused Irish Sugar’s parent company, Greencore, of attempting to silence the IFA through the courts in order to avoid serious negotiation.

"Obviously Greencore would like to take out the IFA leadership and the national beet negotiators. IFA will vigorously defend its legitimate role as the democratically elected representative organisation of beet growers." Mr Parlon said.

The IFA is demanding that Irish Sugar pays an extra £1 per tonne for beet. Farmers say they are receiving 10 per cent less for their produce compared to last year.

But management have refused to negotiate, claiming the farmers are in breach of contract and have described the action as "unlawful".

The company claim the IFA are leading an action that does not have the support of beet suppliers.

"Our contacts with growers indicate that many of them wish to supply sugar beet to the company and this order allows them to resume supplies to the Mallow factory while it remains open," said Irish Sugar chief executive Dr Seá Brady, this afternoon.

He also said farmers wishing to resume supplies to the Carlow plant should contact the company.

Labour Party TD for South Kildare Mr Jack Wall has called on the Minister of Agriculture, Mr Walsh, who is in Doha at the World Trade Organisation meeting, to intervene in the dispute.

"He has a key role to play in defusing the situation by calling for immediate discussions between beet farmers and company management. The grievances of beet farmers must be addressed immediately, while ensuring that Greencore can still run a profitable operation," he said.

Irish Sugar maintain that only a resumption of supplies by tomorrow morning can avert the closure in Mallow.

"If growers resume supply before then [Tuesday] with a guarantee of continuous supply and a serious engagement with Irish Sugar in regard to expert independent price adjudication, farmers will be able to resume delivery of beet," Dr Brady said yesterday.

The IFA insist the reduction on last year’s prices being offered by Irish Sugar is unacceptable but says growers are willing to enter negotiations over a price that recognises "growers’ rising costs of production".

Over 500 farmers and their families demonstrated outside Irish Sugar’s plant in Co Carlow on Saturday. The following day the plant was closed after the company said there was no beet to process.

About one-third of this year’s estimated £60 million harvest has already been supplied, and the company has warned farmers that production will not continue until there is a reliable supply of beet.

Yesterday Dr Brady said the resumption of operations could only take place if "an uninterrupted supply of beet is guaranteed.

"However, even if such a guarantee is given it will be some time before the factories can be made ready to accept beet again," Dr Brady added.