Ireland: Minch Malt, part of Greencore, announced on January 28 it plans to close Banagher Maltings in Co Offaly next September with the loss of 10 full-time jobs. Over 300 malting barley growers in Offaly, North Tipperary, Galway and Westmeath will also be affected by the decision, according to Irish Examiner. A further nine jobs will be lost in the company’s agri-trading branches at Banagher, Borrisokane and Tullamore, when all trading issues with customers are completed at a later date.

Minch Malt sources quality malting barley from farmers for processing into malt for supply to the brewing, distilling and food industries. The Banagher site is the smaller of two plants operated by the company in Ireland. The other is in Athy, Co Kildare.

IFA deputy president Ruaidhrí Deasy accused Greencore of delivering a fatal blow to cereal growers in the midlands with the decision to close the Banagher plant. He said this draconian decision will directly affect growers, who have traditionally supplied malting barley to fill Guinness and export contracts for decades. It follows hot on the heels of the decision to close a Carlow sugar factory.

Mr Deasy called on the company to honour Guinness grower contracts, particularly in light of the fact that the brewing giant will be increasing its Irish production as a result of the closure of Park Royal in London.

Minch Malt said that in spite of the best efforts of all concerned over the past number of years to maximise efficiency and to reduce costs, Banagher remains the least efficient of the group’s eight plants located across Belgium, Ireland and Britain.

It requires significant capital investment to maintain industry standards, but this cannot be justified due to its scale of operation and its uncompetitive position, which had been eroded by higher energy costs, logistical disadvantages and Irish wage inflation. “This rationalisation will enable Minch Malt to focus resources on servicing the domestic market from the modern, efficient, well-invested and much larger Athy plant.”

Minch Malt chief executive John McNamara said the company very much regrets having to close Banagher Maltings with the knock-on effect at the agri-trading branches. “In coming to this decision, we are very aware of the effect that it will have on those employed at Banagher, Borrisokane and Tullamore, many of whom have served the company with great loyalty for many years.”

“We will be consulting with those affected over the coming weeks and months on all matters relating to the closures and will be making every effort to assist them in their future careers,” said Mr McNamara.

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