Sugar processing may have become a relatively minor part of Greencore's business after the takeover of Hazlewood Foods but it is still a sizeable business and what goes on among its European competitors must be of interest to the Greencore bosses.

In recent weeks, the European sugar sector has seen some corporate activity, with French farmers indicating their interest in buying the world's second-biggest sugar manufacturer, Beghin-Say.

Beghin-Say is now effectively on the block, as its Italian parent company, Montedison, is fighting a takeover bid from car giant Fiat and the French power utility Electricite de France.

These predators have no interest in Montedison's food interests so assets such as Beghin-Say, starch manufacturer Cerestar, oils unit Cereol and animal feed subsidiary Provimi are likely to be sold.

Montedison holds a 54 per cent stake in each of these subsidiaries.

Speculation on a bid for Beghin-Say comes a couple of weeks after Suedzucker, the world's biggest sugar manufacturer, said it would buy Saint Louis Sucre, France's second-biggest producer after Beghin-Say, for #1.6 billion (£1.3 billion).

Greencore is unlikely to become involved in any corporate activity in the European sugar industry. The group has been refocused on consumer foods and the Irish sugar business is in effect a powerful generator of cash for the expansion of the overall Greencore business.

However, the sort of money being mentioned for these European sugar assets would seem to indicate the value that Irish Sugar has within the overall Greencore structure.