Kerry Group's interest has gone down well with Golden Vale's milk suppliers. Kerry has said it was prepared to pay its traditional high milk price, good news for farmers who have been in dispute with Golden Vale over the issue of price.

The Irish Farmers Association (IFA) last night said it would go ahead with its picket on Golden Vale plc's annual general meeting in Limerick today. The Golden Vale farmer-suppliers have been involved in a long-running battle with the company over the price it has been paying them for milk. The price has been falling behind that being paid to by other processors in the region.

Mr Padraig Walshe, chairman of the IFA's national dairy committee, said: "Golden Vale farmers have lost confidence in the current Golden Vale structure and management. On the face of it, the Kerry bid would appear to offer farmers a better structure, with full participation in an electoral system which gives them direct representation on the board of management."