ONE of Ireland’s leading dairy companies has confirmed that it is in negotiations to form what it describes as a “long-term relationship” with Fivemiletown Creamery.
The Kilkenny-based Glanbia Ingredients Ireland Ltd (GIIL) has said that both it and Fivemiletown shareholders “see considerable value” in establishing a long-term arrangement between them.
A statement from the company came as concerns were raised about the future of 50 jobs at the plant if Glanbia become involved. Further talks are set to take place this week. Farmers who are suppliers of the Fivemiletown and Brookeborough Diary Co-operative met recently in the Valley Hotel to discuss concerns over the future of creamery. Staff were also called to a meeting to update them on the developments.
In a statement, a spokesperson for Glanbia told our sister paper, TyroneHerald, that an agreement between the companies would result in Fivemiletown entering into consultations with its employees regarding the future of its cheese facility.
“Fivemiletown will also enter into a long-term milk supply agreement with GIIL, who will perform milk collection and testing on behalf of Fivemiletown as well as providing an advisory service to its suppliers.
“As part of the transaction, GIIL will have an exclusive licence over the retail cheese brands except for Boilie which will remain with Fivemiletown.
“Fivemiletown’s successful hardware and agricultural inputs business will develop an alliance with Glanbia PLC’s Agribusiness division.
“This strategic alliance is subject to the approval of Fivemiletown shareholders and the board of GIIL. Both parties see considerable value in establishing a long-term, mutually beneficial alliance.”
‘DIFFICULT TRADING CONDITIONS’
For its part, Fivemiletown Creamery said that they had experienced difficult trading conditions, particularly in its core cheddar cheese business.
A spokesperson explained, “This has significantly impacted on the financial viability of the business.
“The board of Fivemiletown is currently in discussion with its shareholders and staff.”
The issue has also been highlighted by SDLP West Tyrone MLA, Joe Byrne. He said any loss of Fivemiletown Creamery would be a “huge loss” to the area.
“I can only hope that any new owners would reflect on the incredible products that the creamery produces and the very positive contribution to the local economy and think twice about any plans to close the creamery.
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