LAKELANDS DAIRIES OPENS HI-TECH PLANT TODAY - A major new piece of the country's agri-business infrastructure will be opened today. Lakeland Dairies' new milk drying plant at Bailieboro in Co Cavan is the largest such facility in Europe. With the development of the new €20m milk drying plant, the company has consolidated its entire powder manufacturing operations into the largest non-whey milk drying plant in Europe and Ireland.
The chief executive of Lakeland Dairies, Michael Hanley, says that powdered milk is used extensively in the food industry, including confectionery, bakery and baby food sectors. It is exported all over the world with Africa one of its biggest markets.
Mr Hanley said that the business had come under pressure in 2005 and 2006, but since that it has consolidated, has reduced its labour costs and improved energy efficiencies. He says that while farmers are very resilient, they need to see confidence in the economy. On milk prices, Mr Hanley says that the dairy market has improved by 40-45% this year and dairy farmers are growing more confident for the industry.
***
MORNING BRIEFS - Tender prices on construction jobs have fallen 11% in the last 12 months with progressive falls over the last six consecutive months. However the Society of Chartered Surveyors claims the rate of decline is slowing with much steeper falls reported last year than this year. Tender prices are down a third from their 2007 peak, it says but adds that many contractors are bidding for projects as they seek to keep going rather than make profit.
*** All eyes will focus on the monthly tax figures this afternoon from the Department of Finance, which will give a sense of how the Government is keeping to its budget targets. The Central bank also issues its quarterly report on key elements of the economy for the last three months.
*** French pharmaceutical giant Sanofi-Aventis has launched a hostile bid for Genzyme at $69 per share, or $18.5 billion, setting off what could be a protracted battle for control of the US biotech firm. Genzyme is one of the largest employers in Waterford employing more than 450. The move comes a month after Genzyme rebuffed an approach from Sanofi at the same price. Sanofi has been in discussions with Genzyme shareholders and stated repeatedly that it would go no higher.
*** A survey on the retail sector shows that half of respondents - there were 106 in total - rated their performance as either poor or very poor and half said the prospects for their business was either poor or very poor. The figures were produced by Retail Ireland which says many people have significant precautionary savings but they will not start spending until they have greater clarity about the future. That means people need clarity about the economic sacrifices the Government will require of them.
*** Wholesale energy prices increased by 2% in September according to the monthly Bord Gáis Energy Index. Had it not been for a stronger euro against the dollar, the index would have hit a two year high because of a jump in oil prices which are sold in dollars.. There is an insight here about the change in the weather due to the darker evenings. Wholesale electricity prices rose in September and that is because increased demand resulted in more expensive electricity 'peaking plants' being required to be called in to produce power.
**** Andrew Macfarlane, the interim chief financial officer with Aer Lingus since last December has been confirmed as CFO and appointed to the board of the airline. Prior to joining Aer Lingus, Mr Macfarlane served as Chief Financial Officer of Rentokil Initial.
*** On the currency markets, the euro is worth $1.3757 US cents and 87.08 pence sterling.
