Alltech has confirmed it is in talks with Keenan to acquire the company after it was placed in receivership.
Keenan is is based in Borris, Co Carlow and employs 222 people, of which 176 are in Ireland.
Keenan, which has been in business for 38 years, issued the statement regarding the receivers following a request from the directors of the company after discussions with a potential investor concluded unsuccessfully.
A successful outcome would secure the business and employment at Keenan System, the statement says.
Alltech has more than doubled its sales in the last four years to over €2bn. Internationally, it has been integrating its business, becoming more focused on direct sales to farmers.
A statement from Alltech said both Keenan and Alltech are private, family-owned companies and have long been firm friends in the field of agri-business.
Irish farm profitability 'remains a major challenge'
The Annual IFA Farm Income Review, compiled by IFA Economist Kevin Kilcline showed that National Farm Income in 2015 is estimated to have fallen over 3% or €75m.
The fall in aggregate National Farm Income in 2015 was driven by a sharp fall in milk prices and dairy farm incomes. While there was also a fall in the prices for pigmeat, cereals and poultry, prices for sheepmeat, beef, poultry and potatoes all increased.
Output volumes are estimated to have risen significantly for the dairy and cereals sector while there was also some rise in cattle, sheep and poultry volumes. Good growing conditions for pasture and crops resulted in the maintenance of low input volumes and costs, and high output volumes across most sectors.
IFA National Chairman Jer Bergin, responding to the estimates, noted,” In real terms, farm incomes continue to fall, with National Farm Income in 2015 estimated to be only 67% of 1995 levels.
"When compared to other sectors of the economy, average family farm Incomes are only 55% of the average Industrial Wage.
"Despite the sector’s positive contribution to economic recovery, profitability at farm level clearly remains a major challenge across all farming enterprises. The combination of reduced national funding for farm schemes and EU CAP supports, greater exposure to volatile world markets, rising input costs and a constrained credit environment are threatening the viability of family farms.”
