DESPITE unease over health risks with chemically produced foodstuffs, the public remains reluctant to sacrifice cheap food to the new age god of organic living. The muesli eaters may not like it but growth enhancers in agriculture and the application of chemicals in industry are cost effective, producing a more plentiful and cheaper end product for the consumer. The imminent demise of intensive farming, it seems, has been greatly exaggerated. That is fortunate for a company like Irish Fertilizer Industries, which dominates both sectors in the Republic.
IFI, Ireland's only primary fertiliser manufacturer and its largest producer of bulk chemicals, benefited from higher product prices last year to (produce record sales and profits. Pre tax profits surged £13 million to £39 million on a 22 per cent rise in turnover to £166 million. Around 30 per cent of fertiliser output is destined for European markets.
IFI has an enviable financial position. No borrowings and a cash flow of £25 million provide a springboard for ambitious growth plans. The chairman Niall Welch said this week that the company "will be seeking opportunities to do ether things" and is planning growth through "substantial acquisitions".
Dividends of £7.4 million are shared by its two shareholders, ICI and the semi state NET.
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