Golden Vale plc chief executive Mr Jim Murphy's plans to restructure the group as a consumer foods business have progressed with confirmation from the plc that it has received a bid from Golden Vale Co-op to buy the milk processing business in Charleville, the liquid milk operations in Limerick and various agri-trading operations.

A spokesman for Golden Vale plc confirmed a bid had been received from the co-op, but would not reveal details. The spokesman refused to comment on the size of the bid, but the Farmers' Journal has reported the bid at £22 million (€28 million).

While Golden Vale's dairy business has made a significant improvement in the second half of the year - in line with the rest of the dairy industry - Mr Murphy has made it clear he sees the plc's future in consumer foods. Golden Vale is currently in negotiations on a possible £140 million takeover of British group Prize Foods, and the sale of the dairy business back to the coop would significantly reduce the amount of borrowing the plc would have to take on to fund the Prize acquisition.

Earlier this year, the co-op set up a four-man committee - advised by NCB - to consider what to do about the milk processing operations, which the plc had made clear did not feature in its long-term planning.