US processing plants and Irish productivity
The Minister described visits to dairy, meat and corn-processing plants in the United States, praising their product range and productivity and naming the plants. He said Irish facilities compared poorly, but argued that productivity improvements were for the privately owned industry to undertake; he would continue urging change.
asked the Minister for Agriculture the beef and dairy processing plants which he visited during his recent tour of the United States of America; if he will report on the overall findings of his visit; if he has any proposals to implement any of these findings in Irish agriculture; and if he will make a statement on the matter.
Comment on this
Whilst in the US I visited three plants engaged in the processing of agricultural produce. These included a dairy plant, a meat plant and a corn milling plant. I was particularly impressed by the wide range of products produced by these plants and by the high levels of productivity per worker achieved in each of them. These are matters which will be of particular relevance in the future development of our agri-food industry. I also visited the offices of Kerry Co-op in Chicago which is developing a significant export trade in dairy products.
In addition, I availed of the opportunity to look at the greyhound industry in the US. Greyhound racing is spreading rapidly throughout the US and I was anxious both to see the facilities including the tote system, which operate there and to explore the possibilities for expanding exports of Irish greyhounds to America.
Comment on this
Could the Minister name the three plants to which he referred, the dairy, meat and corn, that he visited?
Comment on this
I can of course. The dairy plant was Dean Foods in the State of Northern Illinois, the corn plant was CBC International, also situated in Illinois, as is the meat plant, called Swift and Company.
Comment on this
Could the Minister give us any indication, pertaining to the standards operating in these plants, if many of our plants here would be comparable?
Comment on this
I do not think the comparison would be very favourable as far as we are concerned. It was a most illuminating experience to see the high productivity in the plants in question, particularly the dairy plant I visited.
Comment on this
(Limerick West): Would the Minister foresee the possibility of improving our dairy and beef plants as a result of what he saw in the States, in other words, could the Minister convey those opportunities to the plants here?
Comment on this
I have already expressed at some functions I have attended involving the dairying industry my views on the state of the industry in the States. I think the points were well taken and I shall continue to do so. We do not compare very favourably when one sees the level of productivity in comparable plants in the States. It was an eye opener.
Comment on this
(Limerick West): Resulting from his visit would the Minister be prepared to initiate an improvement in the plants concerned here?
Comment on this
It is not for me to do that. These are privately-owned plants. We are all well aware that the dairying industry has taken upon itself an improvement in the levels of productivity. That has been a significant tendency in the last couple of years. At a time when costs have risen so much they have had to look at their rationalisation and productivity levels. It will be a continuing process because definitely we do not compare favourably with plants in other countries, particularly those in the States.
Comment on this
(Limerick West): In view of the fact that the Minister has said we do not compare favourably with plants in the States, surely it is somewhat naive of him not to initiate in his Department some promotional improvement works within our plants?
Comment on this
The organisation of a business is a matter for the industry itself. It is not for the Minister to dictate. As I often point out here, ours is an open economy. But I have made my views known.
Comment on this
(Limerick West): I am not asking the Minister to dictate his views but, in view of the value of our exports of beef and dairy products, if there is an opportunity for increased productivity and efficiency, it is the Minister's Department that should show the way?