There is never a "good time" to announce the closure of a long-established factory and the loss of traditional jobs. And although the manner in which Irish Sugar broke the news that more than 300 full-time and part-time jobs would go at its Carlow plant was harsh and undiplomatic, that outcome had been feared for some time.
Next Tuesday farmers who grow sugar beet for the factory will lead a protest against the Carlow closure. They will be joined by workers at the plant and by representatives of the business community in the town.
All these interest groups stand to lose income or employment as a consequence of the decision by the parent company, Greencore, to concentrate all sugar production at its plant in Mallow. And they are, understandably, seeking to exert commercial and political pressure on the company and on the Government, which is a "golden shareholder" in the enterprise. Farmers want the company to recompense them for the increased cost of transporting the beet to Mallow. Trade unions are seeking better redundancy terms. And local traders are attempting to limit an inevitable loss of business.
Rationalisation within the food-processing business has become a fact of commercial life. Those companies that fail to innovate or develop economies of scale do not survive. The sugar industry is going through a particularly volatile phase at this time because of demands by the World Trade Organisation that the EU's highly subsidised and tariff-protected sugar regime be reformed and that dumping of EU sugar on world markets end. As a consequence, EU subsidies are likely to be dramatically reduced and production cut.
Greencore has been criticised for not consulting those directly affected before announcing the closure and for taking action in advance of agreement on a new EU sugar regime. But it can hardly be faulted on commercial grounds. By concentrating all production in Mallow, starting from November, it is preparing the ground for a new and more challenging environment for Irish sugar production. Developing the Mallow, rather than the Carlow, site has also been estimated to save the company about €28 million.
The ending of sugar processing at Carlow will be particularly unfortunate for the workforce, some of whom have been employed there for 35 years. It is the State's oldest sugar plant and was established by the government almost 80 years ago. The closure reflects the passing of an era. In spite of that, the proposed rationalisation will place Irish sugar production on a more secure footing. Change is inevitable. And it is rarely without pain.