The Irish Dairy Board will enter into "dialogue" with the Kerry Group should it acquire Golden Vale, the managing director of the IDB, Dr Noel Cawley, said yesterday.

Dr Cawley said that Golden Vale currently owns 10 per cent of the shareholding in the Irish Dairy Board, a figure based on the level of sales of product to the Board.

Kerry Group resigned from the board following a court case it took 10 years ago and does not trade through the Irish Dairy Board system.

There has been no indication what the Kerry Group may do with the Dairy Board shares should it acquire them on foot of a buy out of the company.