The business has been sold to Rosderra for a total of €35 million.

Now the Irish Farmers Association has called on the new owners to increase the payments being made to producers.

In August 2007 a major fire destroyed a significant part of a Glanbia Meats processing facility in County Offaly and for the past year or more the Group has been reviewing the strategic options for the business and following an announcement made on 16 January, Glanbia has now confirmed that it has reached agreement on the sale of its pig meat business to an MBO team led by Glanbia Meats Chief Executive, Mr Jim Hanley.

The business is to operate as Rosderra Irish Meats Group Limited.

The total consideration received by Glanbia for the business (including insurance proceeds for the destroyed assets) will amount to €35 million.

An exceptional loss of €20.5 million will be recorded in the 2007 financial statements of the Group relating to the exit from pig meat activities, inclusive of the sale of the Ruskey cannery site.

"This development is consistent with Glanbia's stated objective of focusing on key growth areas of cheese and nutritional ingredients and the proceeds from this transaction will be invested in furthering the Group's growth strategy," said Glanbia Group Managing Director, John Moloney.

The Chairman of the IFA Pigs and pig meat Committee Michael Maguire said the new owners of the pig meat business formerly owned by Glanbia must return a price increase to pig producers immediately.

"Markets in Denmark, Germany and Spain have seen price increases ranging from 6.5 per cent to 14 per cent in the last fortnight," Mr Maguire said.

"It is incredible that Irish producers have not seen any increase. Rosderra (the new owners of Glanbia Meats) must seize the opportunity to inject some confidence back into the flagging pig industry at this time of crisis.

"Rosderra is now the dominant player in the industry and must demonstrate to their suppliers that they have the capability to drive this industry forward. Sitting on price increases that are being passed back elsewhere will destroy the faith in the company that was built up in the past," Mr. Maguire said.

"IFA’s campaign to reclaim the home market is proving successful. Bord Bia’s advertising is raising awareness of the Quality Assurance logo and volumes of sales of Irish-produced pig meat have increased. Yet pig producers are still without a price increase and incurring massive losses. Every day that goes by without an increase is adding to the severe difficulties that pig producers are facing."