Provisional liquidators appointed to company operating Waterford livestock farm

Cork Cooperative Marts Ltd demanded payment of some €351,000, with a threat that if not paid within 21 days a petition to wind up the company would issue, High Court heard

Farm with more than 200 head of cattle hit challenging trading conditions and is now insolvent, court heard.

The High Court has appointed joint provisional liquidators to a company with a farm of more than 200 head of cattle after it hit challenging trading conditions and is now insolvent.

Mr Justice Brian Cregan appointed Eoin Massey and Anthony Glennon, of Friel Stafford, to Nicholas Galvin Ltd which operates a dairy farm at Kilmacthomas, Co Waterford.

Ross Gorman BL, for the company, told the court on Thursday if the company ceased trading there would be concerns about animal welfare and measures could be put in place to care for the animals during the winding up process.

In its petition, the company said it was incorporated by Nicholas Galvin in 2012.

It was in the business of buying dry cows every autumn for fattening up to sell the following summer, rearing young calves for slaughter and buying "slaughter fit" cattle. 

It also grew crops for silage to feed the cattle during winter.

It typically bought cattle from Dungarvan, Fermoy, Cahir, Kilkenny, Gortatlea and Listowel marts, and regularly supplied livestock to ABP, Liffey Meats (Carlow), Euro Farm Foods and Moyvalley Marts.

Much of the land it operates from is owned by Nicholas Galvin personally, but in recent years neighbouring land has been leased from third parties. It was required to acquire this land because, the petition said, in order to satisfy rules and regulations from the Department of Agriculture in terms of stocking densities.

This effectively meant more land was required to conduct the same amount of business as would have been possible to conduct historically. The main reasons for this are the Common Agricultural Policy and the nitrates policy, the petition stated.

It is a high -urnover lowmargin industry and in recent months experienced challenging trading conditions.

The cost of cattle at marts has grown significantly and the company has not been able to afford to buy as many cattle as in previous years.

More farmers have also been selling directly to the factories, rather than going to marts, and there have been increased costs on the land the company leases.

On October 29 last, Cork Cooperative Marts Ltd demanded payment of some €351,000, with a threat that if not paid within 21 days a petition to wind up the company would issue.

The company acknowledges this debt is due and it is the business is unsustainable, the petition said.

Mr Justice Cregan said he was satisfied to appoint Mr Massey and Mr Glennon as provisional liquidators and take control of the company and he adjourned the matter to next month.