Sparks fly as Kerrygold heads for Cork
A major row has erupted between the Irish Dairy Board (IDB) and Glanbia following the IDB's decision to locate a new production and packing facility for Kerrygold on a Dairygold Co-op site in Mitchelstown, Co Cork.
It had been forecast within the dairy industry that the IDB development would be undertaken in conjunction with Glanbia Ingredients Ireland (GII) at one of their plants in either Belview or Ballyragget.
However, negotiations between the IDB and GII stalled and an alternative site was offered by Dairygold.
One industry source said the IDB decision to opt for the Dairygold site has led to a serious dispute between IDB and GII. He said relations between the two parties were "fairly hot" and "obviously messy".
The IDB decision will see the development of a state-of-the-art production and packing facility at a Dairygold's Castlefarm Complex in Mitchelstown.
The new facility will provide IDB with a fully integrated butter production and packing unit for its blue-chip Kerrygold brand.
It is envisaged that the Mitchelstown site will become a dedicated centre of excellence for IDB and will centralise the innovation capability for Kerrygold.