DAIRYGOLD has confirmed that it is looking at a €130m investment in its processing sites in Mallow, Mitchelstown, and Mogeely.

The investment comes as the company prepares for the lifting of milk quotas in 2015.

Speaking at an economic and agri-food conference in Thurles last Friday, Dairygold Chief Executive, Jim Woulfe told attendees that the company was in a very good position regarding options for post quota processing.

"Like other processors the ending of quotas offers Dairygold its first real opportunity in over 30 years for substantial Dairy growth. In Dairygold our team are excited about the future opportunities and confident about our ability to process and market up to a 50% increase in milk production by 2020." Mr Woulfe said.

He added that that at current milk prices the company potentially will be paying an additional €160 million annually to its farmers by 2020.

"This income will have a significant knock on multiplier effect on the wider economy, especially in Munster," he said.

"Our Mallow site is an excellent brown field site of 22 acres which would facilitate a major processing expansion. Mallow has a long tradition in the production of milk powders and would be an ideal location for additional drying capacity where the infrastructure already in place would reduce the capital cost of significant expansion," he said.

Deputy Tom Barry described the news as 'extremely positive and exciting' for the town of Mallow.

"It will bring direct employment, spin-off employment, economic activity and positivity to the town and is the perfect example of how agriculture and agri-food are going to be central to Ireland's economic recovery," he said. DAIRYGOLD has confirmed that it is looking at a €130m investment in its processing sites in Mallow, Mitchelstown and Mogeely.

The investment comes as the company prepares for the lifting of milk quotas in 2015.

Speaking at an economic and agri-food conference in Thurles last Friday, Dairygold Chief Executive, Jim Woulfe told attendees that the company was in a very good position regarding options for post quota processing.

"Like other processors the ending of quotas offers Dairygold its first real opportunity in over 30 years for substantial Dairy growth. In Dairygold our team are excited about the future opportunities and confident about our ability to process and market up to a 50% increase in milk production by 2020." Mr Woulfe said.

Mr Woulfe said that Dairygold's plan is to have the processing capacity in place for the initial surge in milk deliveries in 2014/2015 and said that at current milk prices the company potentially will be paying an additional €160 million annually to its farmers by 2020.

"This income will have a significant knock on multiplier effect on the wider economy, especially in Munster," he said.

"Dairygold's product strategy is firmly established in cheese and dairy ingredients.

"It's located on a site of some 60 acres with planning in place for expansion."

"In the meantime our Mallow site is an excellent brown field site of 22 acres which would facilitate a major processing expansion. Mallow has a long tradition in the production of milk powders and would be an ideal location for additional drying capacity where the infrastructure already in place would reduce the capital cost," he said.

"This is an extremely positive and exciting announcement for Mallow.

"It will bring direct employment, spin-off employment, economic activity and positivity to the town and is the perfect example of how agriculture and agri-food are going to be central to Ireland's economic recovery," Deputy Tom Barry said this week.

- JOE LEOGUE