Despite a High Court injunction preventing the picketing of the Irish Sugar plant in Mallow, Co Cork, 200 farmers held a protest outside the plant yesterday.
Last night, former Taoiseach Mr Albert Reynolds was rejected by the Sugar Company as an arbitrator in the dispute. He had been asked to intervene by the IFA.
The dispute began last Wednesday with the picketing of the Carlow and Mallow plants and a collection depot at Wellingtonbridge, Co Wexford.
Protesting farmers prevented a load of beet from entering the factory under Garda escort. There was some scuffling but no arrests. As a result, the Irish Sugar Company officially closed the plant at 12.20 p.m. and placed its 650 workers on protective notice from December 1st.
A company statement last night blamed the closure on the IFA. Irish Sugar's chief executive, Dr Seβn Brady, said it was a "direct result of the IFA's unlawful action in obstructing supplies".
The IFA issued no statements and there were no officers at Mallow yesterday. Irish Sugar obtained an interim injunction restraining the IFA from taking steps which could lead to farmers withdrawing supplies of sugar beet from the company or which could "intimidate and/or persuade" growers not to supply beet.
In its statement last night, Irish Sugar said it was willing to negotiate with growers on the shape and form of the independent adjudication system proposed to determine the raw material price. However, Dr Brady insisted the company would continue to pay a fair price for beet. "To concede to a price demand which would make our position more uncompetitive would do no favours to growers or the company in the short or longer term as it would undermine the viability of the sector for both the processor or the grower."
Dr Brady said it was forced to obtain a High Court injunction by the IFA's action. "The IFA must accept that it is the organisation itself and its leadership that has now succeeded in forcing the closing of two sugar factories in a week and in engaging the organisation in High Court action because of unlawful behaviour," he said.
In the Dβil yesterday, the Minister of State for Agriculture said the department was prepared to meet the two sides "at any time" or to nominate a third party. However, the two sides were entrenched and it was difficult to "get them into the same building".
Mr Noel Davern, who has responsibility for the food sector, said it was a commercial transaction between the IFA and Irish Sugar. "While it is not a commercial transaction in the true sense - there is a monopoly - it has always been standard practice."
During a special notice question, Opposition deputies expressed amazement that the Minister and his department had not been in contact with the two sides before now. Mr Jack Wall, Labour deputy for Kildare South, said: "Surely the farming community will not be allowed to again suffer a major catastrophe in regard to income for themselves and their families."
Mr Davern said he was deeply aware of the effects on 4,000 farmers in a sector worth £60 million. Cork South Central TD Mr Simon Coveney (FG) said the two sides were talking about a difference of 50p, but Mr Davern warned against specifying sums at this stage.