THE operations manager of Waterford Foods' Cheese Company subsidiary in Britain, Mr Jim Murphy, is understood to have been selected by a board sub committee as the next chief executive of Golden Vale. His name will be submitted for approval to a full board meeting in Charleville this morning.

It is understood that Mr Murphy was selected by the sub committee from a very short list of candidates which did not include the main internal candidate, Golden Vale consumer products manager Mr Liam, Woulfe.

This morning's board meeting will be one of the most crucial in Golden Vale's short history as a public company, and it is understood that the ratification of Mr Murphy as the new chief executive may not necessarily be a foregone conclusion.

The controversy over the dismissal of former chief executive Mrs Jim O'Mahony on an 8-7 vote has still not abated. Some Golden Vale sources have suggested that the board is now willing to put the past, behind it and unite to try and restore the group's fortunes.

But others have suggested that the exclusion of Mr Woulfe and what some believe is the undue influence of "Dublin stockbroker types" in the decision making process may yet cause dissension at today's meeting.

Mr Murphy has worked in the dairy industry in Britain for a number of years and is operations manager of The Cheese Company, the group acquired by Waterford Foods last year for £125 million.

If he is confirmed as the new chief executive, he faces a difficult task with a board and co op membership, seriously divided since the £3 million superlevy fine was announced last March and the subsequent removal of Mr O'Mahony.

Apart from uniting the factions the new chief executive will also have the difficult task of paying a competitive milk price in the face of strong competition from neighbouring milk processors.

Milk prices are expected to fall to 100p a gallon or less when the seasonal upswing in production resumes next spring. Golden Vale farmers are already suffering from severe superlevies and fines and many may find a serious cut in their income next year an unpalatable proposition.

The new chief executive will also play a key part in restoring Golden Vale's reputation on the financial markets, and his handling of milk prices and operating margins will be a key element in restoring a reputation which has taken a hammering in the past two years.

Institutional investors have become tired of profit warnings and bad news announcements from Golden Vale and will want to see a clear strategy being introduced to restore the group's fortunes.

Golden Vale's cheese business in Ireland and Britain is expected to generate a reasonable return in the coming year, but the new chief executive will also have to address the problem of the Vonk subsidiary in "The Netherlands."