Cappoquin closure signals end for Indigenous Rural Industry and serious financial consequences for many in West Waterford – Coffey

Govt inaction on food labelling and competitive challenges at heart of issue.
Fine Gael Waterford Senator Paudie Coffey has expressed his disappointment and concern at the news that Cappoquin Chickens is now facing certain closure which he said signals the Government’s failure to tackle the problems facing the industry.

“The news that Cappoquin Chickens is about to close is devastating for the 250 people who are to lose their jobs and the 50 producers and suppliers affected. This is a detrimental blow to an entire indigenous and rural industry in West Waterford that will have far reaching consequences for the economy of this area.

“Regrettably, the Cappoquin Chickens closure does not come as a huge surprise given that seven similar businesses have folded in as many years, including Grove Turkeys and Castlemahon Chickens.

“Unfortunately, the Government has failed dismally to tackle the underlying problems facing the poultry sector: spiralling feed costs, inequitable loopholes in our food labelling legislation and competition from cheap imports. The poultry industry is facing collapse as a result.

“Misleading labelling and the substantial transformation loophole are permitting cheap imports, often produced at a lower standard, to undermine Irish products. Fine Gael’s calls for tighter, stricter legislation and the introduction of a Green Ireland label has fallen on deaf ears.

Government were content to sit on their hands and watch this traditional industry go under, no amount of lip service by Government Representatives at this stage will offer comfort or hope to the workers, suppliers and businesses of West Waterford who now find themselves seriously exposed financially because of this closure.

Indigenous industries in Rural Ireland and in particular in this case, County Waterford, have been neglected and let down by this Government."

Cappoquin Chickens Blow Shows Feed Costs and Labelling Loopholes Hurting - Creed

Following reports that Cappoquin Chicken has gone into liquidation, Fine Gael Agriculture Spokesman, Michael Creed TD, today (Monday) said spiralling costs, particularly feed costs, and inadequate food labelling laws were significant contributory factors. Deputy Creed said the poultry industry is hurting and agri-sector jobs are under threat.

"Reports of the appointment of a liquidator to Cappoquin Chickens are the culmination of fears that have been mounting for some time. Up to 250 people employed either full time or as seasonal workers will be devastated by the news, as will the 50 producers dependent on the company's survival.

"The Fianna Fáil Government has failed to heed warnings on the impact of rising feed costs on the poultry sector and it is now clear just how hard these costs are hitting agri-business. The latest Central Statistics Office figures showed feed costs up 21.1% on last year. This is an own goal from the Government whose daft policy on the importation of GM feed is estimated to be costing the industry up to €160 million a year.

"The Cappoquin Chickens blow follows the closures of Grove Turkeys and Castlemahon Chickens. It's painfully clear that the Government must act to save the industry.
"We are also seeing the impact of quality Irish product being undermined by loopholes in our labelling laws. The 'substantial transformation' loophole allows produce which has had minimal processing in Ireland, like the addition of breadcrumbs, to be passed off as Irish. Coupled with misleading labelling this means Irish produce and cheap imports are not competing on a level playing field.

"Fine Gael's campaign on labelling laws has fallen on deaf ears in 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 labelling 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."

200 jobs at risk at Cappoquin Chickens as feed costs and labelling loopholes hit hard - Creed

The following is the text of a statement issued by FG on the financial situation of Cappoquin Chickens. It is full of common sense and has realistic proposals to address the problems faced by Ireland's poultry industry. Is any one in Government circles listening? Will the Government stand by and allow the destruction of the poultry industry which can have a bright future if buttressed by realistic Government policies.This Government has adopted stone age Green Party policy on the importation of GM feed. It has also failed to address labelling loopholes.

FG Statement:

Fine Gael Agriculture Spokesman, Michael Creed TD, today (Thursday) raised in the Dáil the financial situation of Cappoquin Chickens which is under examinership. Deputy Creed said spiralling input costs and competition from cheap imports, which can take advantage of flawed labelling laws, were eating into farm profits and threatening agri-sector jobs.This Government has adopted idiotic Green Party policy on the importation of GM feed

"200 people are employed at Cappoquin Chickens and for them the news that an interim examiner has been appointed will be devastating. The wider implications for the agri-food industry are alarming. "The Government has failed to heed warnings on the impact of rising feed costs on the poultry sector and it is now clear just how hard these costs are hitting agri-business. CSO figures this week showed all farm inputs increasing in cost, with feed up 20%.

"The fact is daft Government policy on the importation of GM feed, introduced as a sop to the Green Party, is costing the industry up to €160 million a year. The new Agriculture Minister will be keenly aware of the closure of Grove Turkeys in Monaghan just a few months ago and, with Cappoquin now in trouble, he must undo the damage done by his Government's GM policy shift.

"We are also seeing the real impact of quality Irish product being undermined by loopholes in our labelling laws. The 'substantial transformation' loophole allows produce which has had minimal processing in Ireland, like the addition of breadcrumbs, to be passed off as Irish. Coupled with mislabelling this means Irish produce and cheap imports are not competing on a level playing field.

"Fine Gael's campaign on labelling laws has fallen on deaf ears in Government so far but the plight of Cappoquin Chickens is a grim wake-up call. As well as the closure of the 'substantial transformation' loophole and the tightening and strict enforcement of existing labelling 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."