Comments by Minister Martin at the Announcement of a new €15.6m Dairygold R&D Centre

At the announcement of a new €15.6 million Dairygold R & D Centre, Mitchelstown, Co. Cork

"The collaboration between Dairygold, Teagasc and UCC to bring food products with additional health benefits to the market points the way forward for future innovation efforts in the sector".

Speaking today (Monday, 20^th June 2005) at the announcement in Michlestown, Minister Martin said,

I am delighted to announce that Dairygold Co-Operative Society is to establish a new €15.6 million Applied Food Sciences R&D Centre in Mitchelstown, Co Cork to drive the development of innovative new consumer food products and food ingredients.

The new centre, supported by Enterprise Ireland, will be operational by end 2007 and will lead to the creation of high quality employment for 15 food sciences graduates - 3 to PHD level with the remaining 12 to Masters and BSc level. This will double Dairygold's R & D staff complement from 15 currently employed to 30.

Ultimately, the R & D Centre will have a capacity for a total of 50 R & D personnel and it is expected that this capacity will be reached post 2007. Enterprise Ireland will continue to engage in on-going discussions with Dairygold with regard to the development and enhancement of the R & D function over the coming years.

This R & D initiative highlights a major commitment and step change in R & D by Dairygold, not only in terms of resources but also in terms of long term R & D planning.

This is a very welcome development for the Irish food industry. Reform of the Common Agriculture Policy as well as changes at WTO level has led to fundamental shifts in the Irish food sector. Commodity prices have fallen dramatically and continue to fall. The future lies in the development of new and innovative high value added health enhancing food products through the application of science, technology and innovation, a key focus of the new Enterprise Ireland Strategy - Transforming Irish Industry.

The food and drink industry makes a significant contribution to Ireland's economic and social development. The indigenous food industry is worth over €16bn per annum, which represents about 9% of gross domestic product. It has created and sustained an enormous amount of employment directly and indirectly. There are over 50,000 consumers who actually work in the food industry, with a further 90,000 in jobs in supply and ancillary services. These jobs are spread throughout Ireland in over 700 companies.

Food and drinks companies have built up a successful domestic market and are also responsible for over €7 billion in annual exports. I believe that potential for future growth in the industry is dependent on adopting a consumer led approach supported by innovation. The term innovation brings to mind cutting edge, scientific developments and, indeed, these are vital to the future success of the Irish food and drinks sector.

Dairygold plays a significant role in the Irish Dairy Industry. It is Ireland's third largest food and agri-business provider with a workforce of approximately 1800 (Ireland only) and the largest farmer-owned producing entity with approx. 5,500 farmers included in its 8,000 shareholders. Its development and well-being is of strategic importance to the growth and international competitiveness of the Irish Dairy sector.

Building research and development capability to support the development of high-value products and services will be a critical foundation of competitive advantage for Ireland going forward. The proposed investment in R&D capability by Dairygold is critical if the company is to grow and prosper on global markets.

Through Enterprise Ireland linking with Third Level Institutes and industry we aim to ensure that the maximum potential is derived from applied research - both in terms of new business establishment and technology transfer. In this context I am particularly impressed both with the type of product to be produced and the level of co-operation between Dairygold and State organisations which has led to the development of the proposed new facility.

The whole nutraceuticals and health and wellness area is undergoing rapid growth, particularly in the US, and it presents a very exciting opportunity for Dairygold and the Irish food industry. The collaboration between Dairygold, Teagasc and UCC to bring food products with additional health benefits to the market points the way forward for future innovation efforts in the sector.

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