The Irish Farmers' Association (IFA) has called on Glanbia to rebuild the pig-processing plant damaged by fire in Edenderry, Co Offaly, to avoid an overdependence on Glanbia's remaining pig plant at Roscrea, Co Tipperary.
However, food sector analysts suggested yesterday that the plant would remain closed because pork processing was not a core part of Glanbia's business.
Glanbia processes 50 per cent of the national weekly supply of pigs, and said yesterday it was committed to keeping that business. However, it is not yet clear if the food group will refurbish and reopen the plant at Edenderry or expand its Roscrea pig-slaughtering facility.
IFA national pigs and pigmeat committee chairman Michael Maguire said making 50 per cent of the pig kill dependent on one plant would be too high a risk given experience with fires.
Glanbia has undertaken to accept all of the pigs it receives from its suppliers for slaughtering. A spokeswoman said full contingency plans would be outlined today after the company met with its employees.
Chief executive of Glanbia Meats Jim Hanley said on Sunday it would be difficult to maintain its level of business in pig processing without the Edenderry plant.
However, NCB Stockbrokers' analyst Paul Meade said Glanbia was likely to invest in expanding the Roscrea plant rather than rebuilding the Edenderry plant. Pork processing generates less than 4 per cent of profits at the dairy and food ingredients group.
Mr Meade said pork's low profit margins and environmental regulations indicate that Irish pork production will decline.
