Born: 23 December 1919, Deerpark, Castlecomer, County Kilkenny
Entered: 07 September 1937, St Stanislaus College, Tullabeg, County Offaly
Died: 08 November 2003, County Dublin
Left Society of Jesus: 05 February 1938
Father, John, was Barrack foreman of works at Portobello. Mother was Anne (Brennan), Family then resided at North Circular Road, Dublin from 1923
Older of two boys with three sisters.
Early education at a Convent school and then at Westland Row CBS. He then went to O’Connells School until 1937
Baptised at Church of the Immaculate Conception, Kilkenny Street, Castlecomer, County Kilkenny, 24/12/1919
Confirmed at St Andrew’s Church, Westland Row, Dublin, 20/02/1930
https://www.dib.ie/biography/mcgough-joseph-christopher-joe-a9334
McGough, Joseph Christopher (Joe)
Contributed by
Clavin, Terry
McGough, Joseph Christopher (Joe) (1919–2003), army officer, barrister and businessman, was born 23 December 1919 at Castlecomer, Co. Kilkenny, the fourth child and first son of John McGough, originally of Co. Clare, and his wife Ann (née Brennan). His father, having served as a lieutenant in the Royal Engineers, joined the Irish army on the formation of the Irish Free State (1922). In 1923, he was transferred to Beggars Bush barracks in Dublin, settling with his family on the North Circular Road; Joseph attended the nearby O’Connell’s CBS. In 1938, he commenced an arts degree at UCD, but switched to law a year later. At secondary school he had organised sporting events and he was similarly active at college; a member of the UCD rowing club, he also served as secretary of the Students’ Representative Council.
Army and law He enlisted in the Defence Forces on 29 June 1940. A member of the Army Signal Corps, he was commissioned a second lieutenant within two months, and was subsequently promoted first lieutenant (1942) and captain (1946). During the 1940s, he completed a course in electronics in Kevin Street College of Technology. He served throughout the country, including service with the Irish‐speaking Céad Cath battalion in Galway. On 1 August 1945 he married Dr Ann Frances (Nancy) Hanratty, a psychologist, daughter of John Hanratty of Parnell Square, Dublin. They had a son and a daughter. From 1948 the family lived in an impressive Georgian house – later a listed building – in Rathfarnham, Co. Dublin. Attached (as a member of the Signal Corps) to the Army Air Corp at Baldonnell, Co. Dublin, he enrolled at King’s Inns in 1947, qualifying as a barrister in 1951; he was called to the English Bar six years later. He served as staff officer to the director of signals at Army HQ from 1949 to 1955, when he was appointed one of two judge advocates on the staff of the adjutant general; he was promoted commandant soon after.
By 1960 his pension entitlement was sufficiently generous to permit him to retire from the army and practise at the bar. While sick with influenza in early 1962, he applied (apparently on a whim) for three jobs advertised in the newspapers. All three applications were successful and he elected to become the secretary of An Bord Bainne (the milk board), a newly established state agency. This career change was facilitated by his service in a part‐time capacity during 1960–62 as secretary to the Irish Exporters Association through which he obtained in autumn 1961 a scholarship for a twelve‐week marketing course in Harvard.
Kerrygold With his newly acquired marketing knowledge, and possessing administrative expertise and an understanding of the civil service mindset, McGough was suitably qualified for the daunting task at hand. Irish dairy was geared towards self‐sufficiency and hobbled by a surfeit of small, inefficient creameries which, like the dairy farmers, were resistant to change and unwilling to consider the good of the industry over their own interests. Bord Bainne effectively provided a minimum price for farmers’ milk by buying dairy products for export from the creameries at a guaranteed price with two‐thirds of any resulting loss being absorbed by the Exchequer – the remainder was passed back to the dairy farmer in the form of a levy.
With McGough as his right‐hand man, the Bord Bainne general manager Tony O’Reilly sought to cajole a faction‐ridden board into supporting an export drive. McGough established an immediate rapport with the youthful O’Reilly with whom he shared a sharp sense of humour. In his reminiscences, O’Reilly emerges as eager to lead the modernisation of Irish economic life and inwardly exasperated by the incomprehension and hostility with which farmers and dairy producers greeted his strictures. Older and more inclined to accept the world as it was, McGough’s diplomacy complemented O’Reilly’s zeal; so too did his ability to defuse a tense situation with a well‐timed quip. Their first and most important initiative was the launch of Kerrygold, the first ever branded Irish butter made specifically for the British market. The campaign, which began in October 1962, proved a resounding success by utilising modern marketing techniques in promoting a very traditional view of Ireland as an unspoilt Arcadia. Both McGough and O’Reilly worked frenetically on the campaign and it was the making of them.
Bord Bainne head McGough became assistant to the general manager in April 1965 before succeeding O’Reilly in late 1966. A fluent and witty speaker (much in demand for speaking engagements) he showed a particular flair for dealing with the media, which combined with the goodwill generated by the success of Kerrygold guaranteed him a largely adoring press, who portrayed him as the archetypal Lemass‐era business leader driving the country’s renewed engagement with modernity and the wider world through the medium of commerce.
Nonetheless the Bord Bainne ‘success story’ did elicit more cynical responses in some sections of the press and among the wider public who were subsidizing dairy export losses while having to pay higher prices for domestic dairy products. In particular Bord Bainne’s failure to produce fully transparent financial statements drew adverse comment. Undoubtedly very good at marketing Irish dairy products abroad, he also excelled at promoting the heavily subsidized dairy sector and the marketing skills of both Bord Bainne and himself to the non‐farming Irish public. A consummate insider, his urbane manner and relentless optimism made it easy to caricature him as an overly complacent member of the state sector aristocracy.
Pre‐EEC McGough promoted the ongoing diversification of Irish dairy manufacturing into products that were less reliant or not at all reliant on subsidies, such as cheese, skimmed milk powder, fresh creams and chocolate crumb, although butter remained predominant because it absorbed the most milk. In the UK he focused on developing a market for quality Irish cheeses, which culminated in the launch of Kerrygold cheese in 1969. The quota system imposed on Irish dairy products imported into the UK led him to continue the policy of orderly marketing whereby a demand was first created for a product thereby strengthening Ireland’s efforts to have import quotas increased.
His early years as general manager were spent grappling with Ireland’s ballooning exportable milk surplus, which rose from 120 million gallons in 1962 to some 340 million gallons in 1970. With the UK only gradually lifting its import quotas and with Ireland shut out of the most important continental markets by the EEC, McGough was obliged to seek more far‐flung outlets, leading him to travel 245,646 miles between 1 January 1967 and 31 March 1970. Bord Bainne in 1969 invested £12 million in a plant in the Philippines for reconstituting Irish skimmed milk to accord with regional preferences. But during 1968–9 the global overproduction of milk precipitated a collapse in world dairy prices and this meant that some 10% of Ireland’s milk output could not be disposed of in a remotely economical fashion. Unsurprisingly McGough and Bord Bainne came in for much knee‐jerk criticism, although an independent economic survey conducted in 1970 found that Bord Bainne was performing well given the circumstances.
The advent of the EEC’s Common Agricultural Policy (CAP) intensified Ireland’s reliance on the UK dairy market and the failure in 1970–71 of Bord Bainne’s Filipino venture was another blow to non‐UK exports. In early 1972 McGough used the capital salvaged from the Philippines failure to establish Bord Bainne’s own distribution network in the UK by acquiring Adams Foods, a UK butter and packaging company, with a view to diversifying into marketing and distributing a wide range of foodstuffs including dairy produce sold by Ireland’s competitors within the UK. This alarmed Irish dairy interests, but McGough’s success in building Adams Foods into a profitable foodstuffs company that made Kerrygold products available throughout the UK silenced his detractors.
Inside the EEC Concerns about continental competition within the Irish market once Ireland and the UK joined the EEC helped McGough to persuade the co‐ops to accept the introduction of the Kerrygold brand into Ireland on a restricted basis in 1972. Following Ireland’s accession to EEC membership in 1973 McGough was praised for his foresight, for the manner in which Bord Bainne was skillfully exploiting CAP regulations to sell in non‐EEC markets, and for the speed with which it moved into continental markets, particularly the Ruhr valley in West Germany.
He also handled with assurance the transformation of Bord Bainne from a semi-state institution into a cooperative (more precisely an export cooperative of all the Irish dairy cooperatives) so as to comply with EEC anti‐monopoly regulations. Under the new dispensation Bord Bainne, with McGough as managing director, served as a proxy for the EEC’s intervention authority by buying dairy products for export from the cooperatives at or near intervention price and by distributing any profit achieved evenly among the cooperatives. Bord Bainne as a cooperative enjoyed a privileged relationship with the state, which pledged to underwrite its borrowings up to £5 million; a guarantee that rose to £40 million by 1977. But one happy consequence for McGough of Bord Bainne’s new status was its freedom from public sector pay restrictions; this facilitated a rise in McGough’s own yearly salary from £6,000 in 1973 to £26,000 in 1977, comfortably outstripping inflation.
McGough’s policy was to use intervention only as a last resort and he noted proudly that he sold no butter into intervention, a strategy considered eccentric in other EEC countries, and by some Irish dairy manufacturers. McGough justified it as designed to strengthen Ireland’s hand in EEC negotiations; more pertinently, sales into intervention might lead to questions about the Irish dairy industry’s need for a central marketing agency.
Entry into the EEC removed the burden of guaranteeing milk prices from the Irish taxpayer and the EEC more than trebled the price of milk per gallon by 1977. Nonetheless, smarting from their experiences in the late 1960s Irish farmers were reluctant to recommit themselves to dairying, and milk production fell in 1974 after a severe winter. McGough launched a well‐publicised ‘More milk’ campaign, yielding a dramatic rise in production from 590 million gallons in 1974 to 735 million gallons in 1977.
Problems However, the workings of the EEC also had the effect of restricting and undermining Bord Bainne’s role. In particular, by providing a guaranteed price only for butter and skimmed milk powder, the EEC subverted the board’s longstanding policy of diversification. Ignoring McGough’s protests, the Irish creameries took the immediate profits available, and by 1976 seventy‐five per cent of Ireland’s exportable milk was going into butter. The EEC had been expected to eliminate Australia and New Zealand from the UK dairy market, but the UK secured special trading rights for New Zealand; combined with a fall in butter consumption in the UK, this made the 1970s a challenging period for Kerrygold sales. The UK’s forbearance towards New Zealand and refusal to countenance EEC levies on dairy substitutes frustrated McGough, who condemned what he saw as the excessively consumerist orientation of British food policy. In one of his last public pronouncements as managing director of Bord Bainne, he criticized the UK for negotiating in bad faith in EEC talks, and urged the Irish government to adopt a similarly ruthless attitude to negotiations.
EEC membership also precluded McGough from compelling cooperatives to export through Bord Bainne. More fundamentally, the sense of urgency and unity instilled into the industry by the adverse trading climate of the 1960s dissipated once Ireland joined a large and lavishly protected agricultural market. The larger cooperatives increasingly sought to export independently when prices were high and only relied on Bord Bainne when they believed they could do no better. McGough threatened to expel wayward cooperatives from the Bord Bainne fold but settled for preserving the appearance of central marketing. It was also reported that he was obliged to grant the most powerful cooperatives a larger share of Bord Bainne’s profits.
During the mid 1970s McGough harboured ambitions to establish a central marketing organization for all Irish food exports. His appointment in July 1974 as chairman of the Pigs and Bacon Commission (which essentially performed the same role as Bord Bainne for pig and bacon exports) was seen as part of this process. In the event, his three‐year term of office was marred by his sanctioning in August 1975 of the purchase of the British firm Bearfield Stratfield, already the commission’s main British distributor, which he hoped to use as a vehicle for distributing bacon under a national brand. But by summer 1976 it was clear that this attempt to recreate the success of Adams Foods had miscarried disastrously. When McGough failed to persuade the pig farmers and processors to provide necessary further capital for Bearfield Stratfield, which had recorded substantial losses, the company had to be wound up. Furthermore, in 1977, Adams Foods experienced temporary difficulties after a failed expansion into frozen foods. These setbacks encouraged a reaction against McGough’s empire‐building within Irish political and agri‐business circles.
During 1976–7 the government considered reducing or even ending its underwriting of Bord Bainne’s borrowings which were reaching alarming proportions arising from the breakneck growth of the dairy industry from 1973. The industry’s growing stock requirements and seasonality – the overwhelming majority of milk produced was sent to the dairies in the summer – obliged Bord Bainne to become one of the larger borrowers on the London money markets from the late 1960s and to cope with increasingly troublesome cash flow and interest charge conundrums, which the introduction of a capital levy in 1977 was but a first step towards resolving. In 1977, peak seasonal borrowings were £131 million. Despite these difficulties, McGough maintained a good reputation, benefiting by association from the subsidy‐fuelled increase in dairy farming incomes and in milk output that occurred after 1973. This was borne out by his appointment in 1976 to head a commission established by the International Dairy Federation to examine the marketing of milk and dairy produce, and by the decision of Business and Finance magazine to make him their Irish business executive of the year for 1976.
Final years Aware that challenging times beckoned, he left Bord Bainne in February 1978 to resume his practice as a barrister. Thereafter he divided his work time between the bar – he became a senior counsel in 1982 – and his rapidly accumulating company directorships; by 1984 he was a director of eighteen companies (ten as chairman) involving him in a diverse range of business sectors. Throughout his career he showed his public spiritedness in membership of many societies, charities and commerce‐ or export‐related bodies, and he was able to devote more time to these after leaving Bord Bainne. In 1978 he was appointed chairman of the newly established Co‐operation North which had been founded to improve relations between the Republic and Northern Ireland, a priority for McGough ever since the unionist community in Northern Ireland had effectively boycotted Kerrygold products (for being so identifiable with the Republic) following the outbreak of the Troubles in 1969. He was appointed chairman of Gorta in 1979 and of the Advertising Standards Authority (ASA) in 1981. Under his direction the ASA drew up the first code of practice for the Irish advertising industry. He was also a director of the Gaiety Theatre in Dublin and chairman of the Salvation Army Advisory Board. In 1987 he received an honorary doctorate from the University of Ulster. Easing into a new role as the avuncular elder statesman of the Irish business scene, he appeared frequently on RTÉ television and radio throughout the 1980s, reminiscing (often humorously) about his business and army experiences. Effortlessly debonair, always immaculately attired and deeply cultured, McGough enjoyed literature, theatre and ballet, serving as president of the Irish ballet society in his army days. He died in Dublin on 8 November 2003 and was buried at Kilmashogue cemetery on 11 November. In the 1970s he wrote a draft autobiography, which was not published.
In his belief in close cooperation between the state and certain economically significant corporations and in his belief that these quasi‐state corporations were obliged to consider not just the profit motive but also the impact of their actions on society, McGough was of his time. Such paternalism could engender a sense of impunity and collusion between vested interests that ill served the interests of the consumer and taxpayer. Similarly his demanding clients in rural Ireland often contended that he and Bord Bainne favoured the big farmer over the small. These complaints failed to take account of Bord Bainne’s important, politically necessary but largely unacknowledged role in mitigating and retarding – in the interests of social stability – the inevitable dissolution of Ireland’s small‐farming social structure. As the dynamic figurehead of Ireland’s burgeoning agri‐welfare complex McGough played a pivotal role in the management of this fraught transition.
Sources
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