Irish dairy co-operative Dairygold has announced plans to invest EUR120m (US$146.4m) over the next eight years in increasing its milk production capacity.
Dairygold, which processes 29m litres of milk per week, is set to increase that by 4.3m litres by 2014 as part of an existing growth plan. The co-operative said it aims to reach production levels of around 52m litres per week by 2020.
The firm said it has committed to accept all the milk its members would produce after the abolition of the EU's milk quota system in 2015. Its suppliers have already forecast a 63.5% increase in production levels from 941m litres to 600m by 2020.
In order to facilitate the increase, Dairygold will invest EUR120m on upgrading its capacity. This will comprise an upgrade of an existing dryer in Mitchelstown and the development of two 7.5 tonne/hour dryers in Mallow, one in 2015 and one in 2019, or earlier if required.
