Kerry is one of five companies given a "buy" recommendation in a new report on the £50 billion European dairy industry by stockbrokers Hoare Govett, a sister company of Riada Stockbrokers. The recommendation is made mainly because of the group's success in broadening its base in food ingredients away from basic milk products.

Just 23 per cent of Kerry's total sales come from dairy products, the lowest proportion of sales in the entire sector with the exception of Unilever.

As well as analysing the industry, the report also looks closely at 16 publicly quoted companies involved in the dairy processing sector, including Irish processors Kerry, Avonmore and Waterford. Page 3