Glanbia has had it tough for a long time now, but outgoing chief executive Ned Sullivan and his successor John Moloney must be thanking their lucky stars that they got out of the British liquid milk business when they did.

Glanbia sold its milk business in the UK to Express Dairies for more than £120 million two years ago, and judging by the news from Express this week, Glanbia got the better of that particular deal.

Food producers in the UK are being squeezed unmercifully by the major multiples, who are continually looking for lower prices for themselves and lower margins for the food producers. That was why Glanbia got out of the UK market, but since its exit two years ago the margin squeeze has got worse and worse.

This week, Express shares sank like a stone on a profits warning because of difficult trading conditions and over-capacity in the British liquid milk market. The markets expect the situation to get worse, with higher input costs because of increased milk collection charges due to the British foot and mouth epidemic, with no sign that the multiples will ease up on their price squeeze.

Quite simply, the multiples can sit back and strike the hardest of bargains, in the full knowledge that there is too much milk looking for too little space on British supermarket shelves.

When Express bought the Glanbia liquid milk business, it was supposed to represent a major step in the consolidation of the British industry.

Certainly, Express has taken big steps towards rationalising the industry. It has shut down four of the five dairies it bought from Glanbia and merged its milk business in Northern Ireland with Golden Vale. But the rest of the industry doesn't seem to have played its part, with one new plant coming on stream shortly and another in the pipeline.

Against that background, Glanbia did well to get out of British milk when it did. Two years ago that exit looked like an ignominious withdrawal, now it looks like one of the best decisions Ned Sullivan took during his tenure at Glanbia.