Ireland’s Dawn Meats has clinched a five-year, €300 million contract to process up to 18,000 tonnes of Irish beef annually for McDonald’s Ireland.
In order to fulfill the contract, Dawn Meats has invested €14.5 million in a new purpose-built, state-of-the-art beef processing facility in Carroll’s Cross, Co Waterford, creating 65 new jobs. In addition, over 100 construction jobs have been created during the construction phase of the facility, which commenced in December 2011.
The construction of the 40,000 square foot facility, which includes the longest freezer line of its kind in Europe, is nearing completion and will officially open for production next month. Testing and production trials at the facility have already commenced
The deal followed a review of beef processing capacity across McDonald's Europe which identified the need for an additional processing plant in Europe. Ireland was identified as a strategically important market and Dawn Meats, who have partnered with McDonald's for the past 25 years, were given the opportunity to extend their relationship on the value-added processing side.
McDonald’s is the largest purchaser of Irish beef by volume, buying approximately 40,000 tonnes of Irish beef each year. Currently, one in every five hamburgers purchased in McDonald’s outlets across Europe is made of Irish beef.
Commenting on the deal, Niall Browne, chief executive of Dawn Meats, said: “We are delighted to have been successful in winning this business with McDonald’s, a hugely important customer with whom we have enjoyed an excellent relationship over the past 25 years. I would like to thank all the team at Dawn Meats for their commitment as well as our farmer suppliers who produce sustainable, quality assured, welfare friendly beef.”
Adrian Crean, managing director of McDonald’s Ireland, added: “McDonald’s is hugely supportive of the Irish beef sector and we believe that Irish beef, which is produced from cattle reared on a natural diet, grazing extensively in open fields during Ireland’s long grass season, is one of the best there is.
“Today’s announcement sees the vertical integration of McDonald’s beef supply chain, with supply, slaughter and processing now all taking place in Ireland, leading to increased value add and enabling companies like Dawn Meats to create and sustain Irish jobs. We look forward to working with Dawn Meats and our other Irish suppliers in growing the amount of Irish produce we purchase and export to our international supply chain, in the years ahead.”
