This week, we focus on the growth and development of the poultry sector in Ireland. Continued investment in Northern Ireland and in certain pockets of the Republic have made poultry become a real alternative.

The drive to invest seems to come mainly from those farmers seeking a second income as additional family members join the business or as an attempt to de-risk existing businesses.

Understandably, Moy Park is a real part of the growth story. No doubt the news this week that JBS, the world’s largest beef processor based in Brazil, has announced the sale of some of its largest assets, including Moy Park, in a bid to pay down the group’s spiralling debts will come as a surprise.

The announcement to sell Moy Park comes less than two years after JBS first acquired the Northern Ireland poultry processor in a deal worth €1.3bn.

The Moy Park integrated model where farmers buy the chicks and then Moy Park buys the birds back once they are ready for slaughter – as opposed to paying farmers a fee for rearing them – has proved successful in that better management means greater returns for the farmer.

Similar to the dairy industry, the Irish poultry industry is going through a period of expansion, especially the commercial broiler trade, organic eggs and free-range eggs. EU statistics show that the poultry industry is growing by 1.5% to 2% per year.

Renewed interest

As Ulster Bank’s Cormac McKervey points out, much of the renewed interest in Northern Ireland poultry investment is in part driven by the northern grant scheme, which for large-scale projects can attract funding of up to £250,000 (€282,000).

We must be mindful that large capital investment projects that attract big grant aid must be backed up with profit to make them sustainable.

As the IFA’s Nigel Renaghan points out, he would like to see some of the subsidies enjoyed by farmers north of the border in the Republic of Ireland and a fair REFIT tariff introduced to level the playing field.

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Investing in Poultry - Key questions