IFI chairman Mr Niall Welch, has said he would like to see the company privatised in the future. While the ultimate decision would have to be taken by IFI's two shareholders - the semi-State Nitrigin Eireann Teo and ICI - Mr Welch said he believed the move would be a positive step for the company. "On a personal basis, I would like to see it happen," he said yesterday.

The transition from the State sector to a publicly quoted company had been successful for companies such as Greencore Mr Welch said. "There's no reason to suggest it would be otherwise for IFI."

A possible flotation would not, however, be that realistic in the immediate future, according to Mr Welch. The company would need to add "another string to its bow" to provide shareholders with good value.

Over the next 18 months, Mr Welch said IFI would be looking closely at possible growth areas for the company, focusing on potential opportunities in the chemical, agricultural and environmental products sectors. Opportunities for doing business in the energy sector would also be looked at, he said.

"We have to work on improving our performance in a way that if our shareholders decide to sell the company off it can be done." Mr Welch stressed, however, that the company was not actively managing its business in this way with a view to a possible privatisation, saying that such a course was also necessary to protect the business.

"IFI is a very well-managed company. It has over loo graduates working within its management structure and enjoys strong brand loyalty from Irish farmers. If the State and ICI decide to sell it in the future, the company will be in a stronger position and shareholder will get more value," he said.