22 July 1998

CONCERN OVER FUTURE OF AVONMORE FACTORIES

By TOM SHIEL

FEARS that Avonmore/Waterford may quit the beef sector - a move which would put hundreds of jobs in danger at Ballyhaunis and Ballaghaderreen - have been allayed by the IFA, the country's biggest farming organisation.

IFA National Executive member, Mr. Brendan O'Mahony of Cross, said yesterday (Tuesday) the feeling at executive level within the organisation was that the Avonmore/Waterford board would not be quitting the beef sector as had been widely speculated.

However, Mr. O'Mahony stressed that the IFA and its President, Tom Parlon would be keeping a close look at the situation as it develops.

The combined group has just under ten per cent of the national beef kill with factories in Ballyhaunis and Ballaghaderreen.

Avonmore/Waterford is claimed to be considering its future in the red meat business in the light of the current Forbairt/McKinsey rationalisation proposals.

If the exit price in the final proposals was attractive enough, the group may be prepared to sell off its beef processing interests.

£7-£8 MILLION

Some sources suggest that Avonmore would get in the region of £7 to £8 million for Ballyhaunis/Ballaghaderreen- a figure based on the numbers of cattle which the plants slaughter annually.

The price being offered to exit the industry has now risen to around £95 per head on the basis of the 1997 kill. The original offer was £60 per head and this subsequently was increased to £85 and now £95.

The meat firm has refused to comment on industry speculation that the group may be prepared to sell off its beef processing interests if the price is right.

However, a spokesman, quoted in the latest "Farmers Journal", said the company welcomed the Forbairt/McKinsey initiative and agreed with the assessment that there is a large amount of over-capacity in the industry.

The spokesman continued: "We also agree that consolidation of the industry is long overdue. We have already indicated that if the right conditions exist we will play a leading role in this consolidation. At this stage we do not wish to comment any further".

Connaught Telegraph - News & Sport - July 1998