The Irish Dairy Board (IDB) is "in dialogue" with Kerry Group on the future of Golden Vale's shareholding in the IDB. Kerry last week acquired more than 80 per cent of the shares in Golden Vale, allowing it to acquire Golden Vale unconditionally.

Kerry has no shareholding in the IDB and has not traded any significant amount of product through the board since the early 1990s. But Golden Vale was a 10 per cent stakeholder in the board and this shareholding now has been acquired by Kerry through the takeover.

It is difficult to put a value on 10 per cent of the IDB. As shown on the balance sheet, the board is worth 250 million. Technically, that would make 10 per cent worth 25 million, but this is to undervalue the board, because it does not include the value of the Kerrygold brand nor the goodwill of the IDB.

It is not known whether Kerry will continue to hold the Golden Vale stake in the IBD. Following an acrimonious court action in 1990, Kerry resigned its own 10 per cent shareholding in the then Bord Bainne and was paid back the par value of its shares at £1 per share. Kerry has had little contact with the IDB since and is the only dairy processor which is not a shareholder.

The IDB would be interested in keeping Kerry as a shareholder on the basis that it makes little sense to have two separate entities marketing Irish dairy products abroad. But Kerry would tend to look unfavourably on the IDB's policy of paying members a price which reflects the mix of the market prices at any given time.