GLANBIA, a quoted food group, has taken a majority stake in the biofuels company Eilish Oil, which is based in Rathdrum, Co Wicklow, writes Ciaran Hancock.

The Kilkenny-based food group’s agribusiness is planning to process rapeseed into plant oil to create fuel for its milk fleet and hauliers in a bid to tackle rising energy costs. It will also create animal feed to be sold by Glanbia Mills.

The level of the investment is not known, but it is believed to involve a six-figure sum.

Latest accounts for Eilish show it had accumulated losses of €51,676 in the 12 months to the end of April 2005.

Douglas Ffrench Mullen and John J O’Mara are listed as its directors.

The accounts also show that it received a grant during the year of €22,500 from the Wicklow Rural Partnership, a rural development company, for the purchase of a piece of machinery.

Glanbia is believed to have offered rapeseed contracts to more than 300 farmers who are in a position to supply the 2007 harvest. Farmers have been offered a guaranteed price of €240 a ton.

Headed by John Moloney, Glanbia last week reported pre-tax profits of €30.2m on revenues of €922.8m for the six months to the end of June.

It also announced the acquisition of the California-based nutritional business Seltzer Companies for $105m (€81m).