Glanbia plc said yesterday that it expected to meet market expectations for its full-year results, despite experiencing a challenging first half.

Managing director John Moloney told the annual meeting of the food group in Kilkenny that it had faced "trading challenges", principally in agribusiness and its Irish milk processing division.

Despite the tough trading conditions in the milk division, the company has offered to hold its milk price at the current level until October.

The offer was made as a vote of no confidence was passed in the board of Glanbia Co-operative, which owns almost 55 per cent of Glanbia plc and also held its agm yesterday.

In mid April, milk suppliers mounted mass protests outside the company headquarters over the cut in milk prices being paid to suppliers. Angry farmers today brought up their grievances at both the meetings of the plc and the co-operative.

A company spokeswoman said the board would have to take on board the vote of no confidence. She said that the price of milk would be reviewed in October.

Speaking after the meeting, the Irish Farmers' Association national dairy committee chairman Michael Murphy said that the Glanbia commitment to hold milk prices until October after its recent four-cent-a-gallon cut was put forward in the face of demands from angry co-op shareholders at the meetings.

Meanwhile, Glanbia chairman Tom Corcoran said it was on target to complete two major international dairy processing investments.

Milk powder production has begun at its joint venture with PZ Cussons in Nigeria.