Irish dairy co-op Ornua is suing a cold store operator for nearly €9m over damage to its butter products after racking in a refrigerated warehouse collapsed.

Ornua Co-Operative Ltd, which markets the Kerrygold brand on behalf of Irish dairy co-ops, is suing VF Cold Stores, which stored 3,360 pallets of frozen butter when the racking collapsed on July 25, 2018, in its Jamestown Road premises in Finglas, Dublin.

Ornua is also suing Capendu Ltd, of Dunboyne, Co Meath, which VF Cold Stores says installed and maintained the racking system.

Kepak

In a separate but related case, four other companies in the Kepak meat processing group are suing the defendants in relation to damage to their products as a result of the collapsed racking.

Kepak Group Ltd, Kepak Convenience Foods, Kepak Longford and McCarren Meats of Cavan claim 850 pallets of meat products were damaged.

The case was admitted to the Commercial Court list by Mr Justice David Barniville, who was told the defendants were neutral in relation to the application to admit the case.

In its proceedings, Ornua says that following the incident, a difficult and complex process of sorting and segregating some 41,000 cases of product for different customers was undertaken.

Colin Kelly, Ornua’s head of strategy planning and risk management, said in an affidavit that the final figure of losses has still not been quantified, but would be in the region of €8.95m and may exceed €9m. Kepak estimated the total value of the loss will exceed €1m.

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