FRANTIC EFFORTS TO SAVE TROUBLED CHICKEN FACTORY

The liquidator at Cappoquin Chickens has been given permission to continue trading for a period of six weeks but the threat of major job losses still hangs over the area. As this week’s Avondhu went to press, it also emerged that a co-operative comprising of breeders and growers is to consider making a bid to buy the troubled company.

The High Court heard on Tuesday of the liquidator’s hopes that Cappoquin Chickens would process and sell its stock of 1.3 million chickens, which would bring in income of over half a million euro.

The long established firm is one of Ireland’s largest poultry producers and employ 150 full-time and 100 seasonal workers in the west Waterford/east Cork area. The company processes and distributes fresh and frozen poultry products throughout the country. The company is run by the O’Connor family from Cappoquin who have been in the poultry business for nearly 50 years.

The outbreak of avian flu, higher food stuff costs as well as cheaper imports from South America and Asia contributed to a €7m deficit for Cappoquin Chickens. As a result a liquidator was appointed last week and the company will now be put up for sale.

In early August, UK-based Derby Poultry purchased a 25.8 per cent stake in Cappoquin Chickens, but deep fears persist locally and within the industry that the company faces an uncertain future.

As well as company employees, 40 chicken growers and 10 egg suppliers are dependent on the outcome. Last Monday the Irish Farmers Association (IFA) held a protest rally at Lefanta Industrial Estate.

The IFA says that growers and breeders are owed more than €1 million after the firm’s finances were examined. It is thought that if an investor doesn’t come forward in the next two weeks the future of Cappoquin Chickens is doubtful.

Speaking to The Avondhu this week local producer, Michael Walsh, said, “I think it’s very sad news for the general area. I feel there will be a large void in the East Cork/West Waterford region as Cappoquin Chickens are the biggest employer. It’s very bad news for me as a producer. The livelihood of lots of families will depend on an investor coming forward.

" For some people it’s their only job since leaving school which shows how Cappoquin Chickens has been such a good employer. It’s sad to see a well-run family business like this go into liquidation. Whoever buys into it will be getting full traceability, quality and a top of the league product.”

The Avondhu also spoke to Fine Gael’s agricultural spokesman, Michael Creed.

“It’s devastating news for the employees and the growers in the area. Regrettably it’s not a huge surprise and has been on the cards for a while now. There are two main issues associated with the closure.

"Failure of the Government to tackle the issue of GM feed which supports the rising cost in the first issue. CSO figures have shown that inputs have risen by 20 %. Also there’s the labeling issue. Imports take advantage of our labeling system where a cheap import of dubious quality from, for example Thailand, can be processed, bread crumbed and passed off as Irish produce.”

“With the closure of Grove Turkeys in Monaghan earlier this year it’s looking like there will be no poultry industry in this country in the future. Fine Gael’s campaign on labeling laws has fallen on deaf ears in the Government so far but the prospective liquidation of Cappoquin Chickens has to be a wake-up call.

"As well as the closure of the ‘substantial transformation’ loophole and the tightening and strict enforcement of existing labeling laws, Fine Gael wants to see the introduction of a Green Ireland label.”

“This single, recognisable brand would help Ireland capitalise in overseas and domestic markets on its reputation as a green, healthy, quality food producer and help secure a premium price for Irish produce and Irish farmers.”

Any commitment in the Programme for Government promising to invest in the rural economy, appear to have gone by the board completely.

In a further statement Sean Sherlock TD, the Labour Party spokesperson on Agriculture and Food said, “The revelation that liquidators have been called in to Cappoquin Chickens is very bad news for the company, its workers and local suppliers, but the Minister for Agriculture cannot simply respond to this development with mock surprise.

"The problems besetting home-produced poultry, specifically as they relate to a food regulation regime that allows poorly-labeled imports to compete with high standard Irish produce, have been well flagged by the Labour Party and others for some time now.“

“It is beyond doubt that the threat to Cappoquin has come about, thanks in part, to a government that has tolerated a regime giving a comparative advantage to cheaper imports. That’s despite promises to the contrary contained in the Programme for Government. Cappoquin’s troubles are indicative of a trend where rural-based businesses can no longer compete with foreign produced goods.”

“The Government must redouble its efforts to encourage growth of indigenous industry and ensure the food security of the island of Ireland into the future.”

Deputy Sherlock concluded, “One senses that the Irish Government has succumbed to a philosophy of blaming “external market forces” for every lost job and is bereft of ideas on protecting food industry jobs.”

‘BUSINESS AS USUAL’ FOR BREEO AFTER KERRY DEAL BLOCKED

Reox Holdings chairman Flor Riordan said it would be ‘business as usual’ for Breeo Foods after the Competition Authority blocked the proposed sale of the company to the Kerry Food group last week.

However one member of the former ‘Save Galtee’ protest group has highlighted the decision as an indictment of a management “devoid of ideas” at the company and has called on Breeo Foods chairman Jerry Henchy to resign.

In blocking the merger the authority, who had only put a stop to two previous mergers since the current legislation was introduced in 2003, said the deal would ‘substantially lessen’ competition in the Irish market for the production, supply and distribution of processed cheese and non-poultry cooked meats.

Both companies involved expressed their disappointment that the sale of the food company, which includes the Dairygold, Galtee, Shaws, Roscrea, Mitchelstown, Calvita and Sno brands, was refused.

“We are naturally disappointed at the Competition Authority decision as we believe that the sale of the business to Kerry Foods was a good proposition for the Breeo business, its shareholders and staff, Irish consumers and the consumer foods market in this country. We will review the detail of the Competition Authority’s decision over the next number of days,” Mr. Riordan said last week.

“It is business as usual for Breeo Foods. The sale process was initially triggered by an unsolicited approach in October, 2007 to buy the Breeo Foods business. The subsequent offer from Kerry Foods represented compelling value for Reox shareholders and the board of Reox Holdings plc was duty bound to consider it and upon consideration the board decided to proceed with a sale.”

Despite the setback Mr. Riordan was upbeat on the health of Breeo Foods, whose restructuring under Mr. Henchy has seen the controversial closure and demolition of the Galtee bacon factory in Mitchelstown.

“Breeo remains an exceptionally strong business proposition with its portfolio of consumer foods brands including Dairygold, Galtee, Shaws, Roscrea, Mitchelstown, Calvita and Sno.

"Over the last five years the business has undergone a significant restructuring which has improved its operational efficiency and transformed it from a raw material processor to a customer focused retail business driven by innovation and new product development. These improvements will ensure the business remains competitive and delivers strong returns to shareholders in future years,” he continued.

“Our focus in Reox Holdings is to secure long term sustainable competitive performance and deliver maximum value to our shareholders across our portfolio of businesses and on that basis Reox Holdings will continue to operate the profitable Breeo Foods business.

"Reox Holdings will continue to build on Breeo’s position in the market and exploit opportunities which will arise to maximise shareholder value through the business,” Mr. Riordan concluded.

Tony Lewis, formerly of the Save Galtee Action Group believes the decision is a bigger blow to Reox Holdings than they are willing to admit.

“We have believed from the start of the break up of Dairygold, since the outsourcing approach taken by Jerry Henchy, that it is a policy devoid of ideas and serves only as an easy approach to lining his own pockets and the pockets of his fellow executives,” Mr. Lewis told The Avondhu.

“His strategy is of no interest to farmers, the community or shareholders. Look at what has now happened; Dairygold has been turned into a cul-de-sac company and it is now the responsibility of the directors to address issues raised by the Competition Authority’s decision and look at the way the company is being run.”

When asked if he felt the decision was so serious that Mr. Henchy’s position would be under consideration, Mr. Lewis was adamant.

“Absolutely. The very basic principal of a co-op is the idea that it is competitive for farmers, to ensure the best price for produce. The Competition Authority has taken the same view. Here we have seen Dairygold broken up and the company led by a detrimental, cul-de sac management style where no one is a winner. The decision made by the Competition Authority is the correct measure to ensure there is competition for both consumer and farmers. It also leaves some serious questions for the directors of Reox Holdings to think about,” Mr. Lewis concluded.

Local F.F. deputy, Ned O’Keeffe described the decision this week as ‘a very serious issue for Dairygold’. “They have no option in my opinion, but to bring back these brands to Mitchelstown and Mallow where the goods were being manufactured. At least in that way, people would accept the brands as being genuine.”

LOVELY GIRLS GALORE IN KILBEHENNY

Still a little way off the prestige associated with the Rose of Tralee, the ‘Village Cailin’ contest in Kilbehenny still attracted a fair share of attention when hosted as a highlight of Kilbehenny Festival at the Three Counties Bar on Saturday night last.

Ten gorgeous cailins from Kilbehenny and surrounding areas paraded their looks and talents before judges from Limerick and Dublin.

Master of ceremonies, John O’Brien, did a wonderful job chatting to the girls making them feel at home and getting the best out of each of them. Watch out Ray D’Arcy for 2009!

Local business people put forward contestants for the competition and Nora Cunningham of Knocknascrow, representing Moss Fitzgerald Plant Hire, was crowned ‘Village Cailin’ for 2008.

The duck derby was a great success on the Mill River on a lovely sunny Sunday afternoon when Carmel English picked up first prize with Mick Shinnick and Eoin O’Mahony also in the money.

The following emerged as winners in the big festival raffle - 1st prize Weekend for 2 in Killarney- Donie Keane, 2nd prize Digital Camera - Helen Noonan, 3rd Radiance Voucher - Rita McMahon, 4th Meal for 2 - Kathleen Fox, 5th Bottle Brandy- Breda Piggott, 6th Bottle Brandy - Johnny Roche, 7th Wine - Gobnait Sheehan, 8th- Set Glasses - P Houlihan.

The committee have expressed their thanks to everyone that got involved and helped in organising last week’s festival.

MITCHELSTOWN’S NEW PARISH PRIEST SPEAKS OF ‘GREAT HONOUR’

Mitchelstown’s new Parish Priest Fr. Michael Fitzgerald this week said he considers it “a great honour” to be appointed to the role in what he describes as a “lovely, great parish.”

Fr Fitzgerald told The Avondhu that he is looking forward to working with both Canon O’Leary and Fr. Green, to whom he says he is very grateful for their support, and the local parishioners at large in the future.

“I genuinely feel unworthy of such an honour,” said the popular local priest, who came to Mitchelstown in October 2005. There will be a special ceremony at the Vigil Mass on this Saturday, September 6 to celebrate Fr. Fitzgerald’s elevation to the position of Parish Priest.

Fr. Fitzgerald will bring nearly 30 years of experience to his new challenge. A native of Ballynoe, where he attended national school, the former pupil of St Colman’s College in Fermoy first served in Cobh following his ordination in 1979.

He followed this with spells in Aghinagh, near Macroom, Dunamore, Ahadda and Mallow before returning for a second period in Cobh prior to his move to Mitchelstown. The youngest of a family of 11, two of his siblings sadly passed away in childhood, Fr. Fitzgerald will be surrounded by family, friends, and well wishers this Saturday.

Bishop John Magee will induct Fr. Michael as parish priest at a special induction ceremony during the vigil mass in the parish church.

Canon O’Leary is retiring after fourteen years of dedicated service to the parish and this will be acknowledged during the mass. A special choir has been established to enhance the liturgy and there will be refreshments in the convent school hall afterwards.

Anyone wishing to assist or contribute home baking should contact Kayren or Teresa at 087-0637222. The school hall will be open to receive food between 5-7pm on the day.

FERMOY SUPER TROOPERS TAKE GOLD AT ALL-IRELAND

Fermoy’s reputation as a centre of scouting excellence has been further enhanced following the success of local scouts at the All-Ireland championships.

Rated extremely highly by their leaders the group (18th/19th section) performed to an exceptional degree in this demanding competition held at the picturesque Larch Hill facility in Dublin.

The All-Ireland championships are the ultimate test for Irish scouts and to succeed requires a supreme effort. By all accounts the Fermoy representatives were outstanding in a whole range of disciplines and got their just reward when they scooped the prestigious gold standard.

To excel at this level of scouting competition you must be an all rounder and the Fermoy scouts proved they are exactly that.

During their four days in the capital, they were required to set up camp, ensure it was serviced and sanitised, prepare daily meals, build a 40 feet bridge, keep detailed records of camp activity, participate in a grueling mountain hike and still remain upbeat.

This very resourceful group aged between 12 and 15 rose to every challenge they were set. Showing commendable grit and determination they seemed to make light of the physical and emotional demands made upon them.

They made a huge impression on everyone they met and there was tremendous good feeling towards the Fermoy group when they were called forward to accept the Spirit of the Camp trophy.

Like everything else they did in Larch Hill their timing was excellent as this is the 75th anniversary of scouting in Fermoy. The Phoenix award, formerly known as the Melvin was won by Fermoy 36 years ago and fittingly 2 of the current brigade, Bobby Buttimer and Caolan Gubbins had uncles on that winning team.

Despite their impressive trophy haul the youngsters were modest about what they’d achieved and are already planning further activities.

Adrian and Trisha McGrath who are heavily involved with the scouts were anxious that the sponsors, supporters and especially parents of the scouts be acknowledged – without this essential back up All-Ireland success would not have been possible.

LOTS OF WINNERS AT DEBUT TRIATHLON

Sportingly, socially and economically the town of Fermoy emerged the big winner following last Sunday’s successful hosting of Fermoy’s first ever Blackwater Triathlon.

For many, last week’s promotional feature in The Avondhu was the first they knew about the triathlon which was hosted by the Fermoy based Blackwater Triathlon Club. Even seasoned triathlon goers were amazed at the fledgling club’s ability to stage such a large event.

The club and its Trojan members won widespread praise for last Sunday’s historic sporting event. Organisationally this progressive club got everything spot on.

As the club basked in the afterglow of a smoothly run event PRO and former champion boxer, Frank ‘The Hammer’ O’Halloran was quick to pay tribute to the many volunteers from a variety of clubs and associations who got behind the triathlon.

“Everyone put their shoulder to the wheel, it was a great community effort, we’re hugely grateful to the volunteers who helped us out” he said. Over 400 competitors took part and despite the daunting nature of the event the 3 part sporting challenge had very few non-finishers.

The event, which has its origins in the ‘Iron Man’ competition of the mid 1980s is very much in vogue and has become a sporting phenomenon in Ireland. Men and women have taken to it in huge numbers and with each passing week it attracts new recruits.

The gardai, Order of Malta and Fermoy Search & Rescue Unit were all on stand by last Sunday, fortunately, their considerable expertise was used sparingly as competitors safely emerged from the Blackwater before scampering to the bike station where they headed out the Mallow Road, the final phase of the triathlon saw athletes complete an energy sapping 5 km run.

All along the route there were marshals, stewards, water station volunteers and adjudicators charged with ensuring triathlon runs were adhered to. Competitor safety was paramount and nothing was overlooked.

Food and drink was served in The Forge Bar and Restaurant following the swim/cycle/race. Brian Enright and his staff did an excellent job coping with the large crowd none of whom went home hungry.

Organisers will reflect for a period of time before deciding on whether or not the Blackwater Triathlon will become an annual fixture.