Arrabawn plans for more milk processing

A SURGE in milk production across the Arrabawn catchment area could now mean that the co-op will have to increase processing capacity over the coming years.

Arrabawn CEO, Conor Ryan, told the co-op’s AGM in Nenagh that the 2020 target capacity figure for milk supplies had now been reached, three years ahead of target.

He said that over the past four years, capacity had grown by 45% with the post-quota jump in production now leading to Arrabawn ‘recalibrating’ its capacity plans to cater for the greater supplies.

“We have an immediate plan that would give us another 10% headroom but the longer-term plan for 2020 needs to be reviewed and we need to ensure we have increased capacity.

“Previously, we had expected supply to increase slightly this year but it’s increasing faster than we had anticipated.

“We need to come up with a concrete plan over the next few months to deal with this.  Our Kilconnell site has capacity but our Nenagh site is the one that will need capacity adjustment,” said Conor Ryan.

He said that the overall outlook on milk was positive with the EU price having stabilised. Mr. Ryan expressed ‘reasonable confidence’ that the current price levels could be maintained.

The milk market situation has been buoyed up over recent weeks by a thriving butter market, largely brought about by increased demand from Saudi Arabia and the United States.

For more, read this week’s Connacht Tribune.