The results from Golden Vale this week made good reading and the excellent performance from the group's consumer foods operations have vindicated Jim Murphy's decision to steer Golden Vale away from the dependence on the commodity dairy operations he inherited three years ago.

But the results from butter and milk powder operations were shocking and reinforce the view that the Irish dairy industry is heading for armageddon unless it gets its collective house in order. To say so might be whistling in the wind, but until Irish commodity dairy processing gets its cost base in order then it has no long-term future.

Given that Golden Vale is only number three in the Irish dairy pecking order, one dreads to think what sort of figures are going to be churned out by the industry leaders, Glanbia and Dairygold, for their commodity dairy business when they report their results in the next few weeks.

Milk price is only part of the cost equation here. Jim Murphy said this week that the entire Irish butter industry - north and south - could be served by just two big plants. That's food for thought.