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 closes

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IFA demonstration at Cappoquin Chickens as one of Ireland's most modern plants goes into liquidation

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Today a large demonstration was held by Waterford IFA outside Cappoquin Chickens-in liquidation- to protest at the plight of the poultry industry. Speakers included Padraig Walshe President of the IFA, Derek Deane IFA, Michael Keane Waterford IFA and Ned Morrissey chairman of IFA poultry committee.

Present also were Senator Paudi Coffey (FG), Cllr Nora Flynn (FG), Cllr Declan Doocey (FG), Cllr Kevin Wilkinson (FF), Cllr James Tobin (FF). There was IFA support from counties such as Monaghan and Meath. There was widespread local support not alone from farmers but from local business interests and the general public also. The closure of Cappoquin Chickens would hit 40 growers and 20 rearers and breeders and result in the loss of 150 permanent jobs and 50 seasonal jobs.
This protest received widespread coverage from RTE radio and television and TV3. In addition there were representatives of the printed media present. Growers are particularly thankful to the media for highlighting the plight of the poultry industry. The Irish poultry industry is now on the verge of extinction.

There was strong criticism of supermarkets which continuously push through reductions in chicken prices whilst maintaining their own profit margins. Processors pass on these reductions to the growers who then find profit margins further squeezed. In the words of one speaker "You cannot produce two chickens for the price of one". For growers profit margins are counted in cents. There was strong criticism of the lack of traceability of much of the foreign chicken used by caterers and take aways. Government policy on relabelling of foreign chicken as Irish-if it has been through Irish processors-was roundly criticized. There was a demand for action by the Government.

The local growers produce very high quality chicken which is much superior to an imported variety which often lacks traceability. In addition there is an excellent work force and a highly modern processing plant. With proper investment this plant has a future. An added bonus is that growers,rearers and breeders are highly flexible.

If this plant closes the spectre of economic Armageddon looms for west Waterford.