This is a subscriber-only article
I had always regarded the existence of the sugar beet industry in Ireland as a triumph of politics over economics. When the old Irish Sugar company – now Greencore – had four sugar factories in Ireland, the cost of producing sugar here was way out of line with the efficient sugar beet industries of East Anglia and the areas of continental Europe, roughly bordering the North Sea.
Prior to its closure in 2006, the Irish sugar industry was producing sugar at a cost that was calculated to be about 20% over that of the British and French industries and about 2.5 to three times the cost of cane sugar from Brazil. In addition to an EU policy of favouring beet sugar, there was also an informal understanding that national producers would service national markets.
Since then, there have been several suggestions that the Irish sugar industry be resuscitated but until now, nothing concrete has emerged.
Last week, I was delighted to attend a presentation by the promoters who have bought a site of 260ac on the Kildare/Carlow border with the intention of restarting an Irish sugar industry.
In the more than 12 years since the old comparisons were made, which I mentioned at the start, the scene has fundamentally changed.
Sugar beet yields have improved dramatically due to consistent genetic improvement. There is a huge level of confidence that Irish sugar beet yields in a favourable location will compare favourably with those areas such as East Anglia, France and the Benelux countries. The byproducts of a sugar manufacturing industry are now much more than just sugar beet pulp and tops. We are now looking at the production of biodegradable plastic, pharmaceutical products and feedstock for digesters. A few years ago, I visited an East Anglian plant that used the carbon dioxide to profitably grow enormous quantities of tomatoes.
To start a new plant from scratch will, it is reckoned, cost about €300m. If the project adds up, the agricultural and regional spinoffs would be very considerable. The purchase of such a well-located, strategic site is an indication of real commitment.
It will be interesting to see what commitment potential farmer growers will be willing to make when invitations to subscribe are issued.
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