The development, which will create 115 jobs, incorporates an €83.5m redevelopment of its milk processing site in Mallow, as well as a €33.5m upgrade of its Castlefarm processing site in Mitchelstown.

Both developments were officially unveiled by An Taoiseach Enda Kenny with Dairygold CEO Jim Woulfe as well as Minister for Agriculture Simon Coveney and Minister for Jobs Richard Bruton. The Mitchelstown plant is also the proposed site for the Irish Dairy Board (IDB) Kerrygold butter plant. Each of the other dairy co-ops were represented at the Dairygold unveiling.

Speaking this morning, CEO Jim Woulfe described the two developments as being “crucial” to its post-quota expansion. Dairygold has forecast that it will produce an extra 600m litres of milk per year by 2020.

“Our post-quota strategy not only ensures that we will have the capacity in place to process all of our members’ milk...but it also significantly improves our technology capability allowing us to produce higher value ingredients,” Woulfe said.

The €33.5m investment in Mitchelstown has expanded its processing facilities meaning it can now process over 16m of milk and a further 18m litres of whey per week. In Mallow, the €83.5m investment will see a second 7.5t/hour dryer installed in the coming years. When fully finished, the site will be able to manufacture in the region of 450 tonnes of milk powders per day.