Avonmore Waterford has begun what is expected to be a series of asset disposals with the sale of Waterford Food Products in Wisconsin, USA, to the Dutch foods group Gistbrocades for £10 million.

The Wisconsin operation manufactures and markets starter media, dressing mate and cultures for the US cheese manufacturing industry. The sale, while not a surprise, came earlier than most analysts had expected and was welcomed for that reason. Analysts also welcomed the fact that Avonmore Waterford has made a £2 million book profit on the sale and believe that it will be the first in a series of disposals over the next 12-18 months.

Analysts believe that, apart from any savings that it makes from the rationalisation of its Irish dairy operations, Avonmore Waterford will sell around £70 million worth of assets by the end of next year, notably the dairy operations in Wisconsin and the British fruit juice business.

In addition, as the group completes its first asset disposal, Avonmore Waterford unions meet in Portlaoise today to consider the latest redundancy offer from the company. Six weeks pay for every year of service has been offered, but so far no numbers have been put on the jobs that will be lost.