Mr Justice Brian Cregan appointed Eoin Massey and Anthony Glennon, of Friel Stafford, to Nicholas Galvin Ltd, which operates a dairy farm at Kilmacthomas, Co Waterford.
Ross Gorman BL, for the company, told the court yesterday that if the company ceased trading, there would be concerns about animal welfare and measures could be put in place to care for the animals during the winding-up process.
In its petition, the company said it was incorporated by Nicholas Galvin in 2012. It was in the business of buying dry cows every autumn for fattening up, rearing young calves for slaughter and buying “slaughter-fit” cattle. It also grew crops for silage to feed the cattle during winter.
Much of the land it operates from is owned by Nicholas Galvin personally but in recent years neighbouring land has been leased from third parties. It was required to acquire this land, the petition said, in order to satisfy rules and regulations from the Department of Agriculture in terms of stocking densities.
This effectively meant that more land is required to conduct the same amount of business as would have been possible to conduct historically. The main reasons for this are the Common Agricultural Policy and the nitrates policy, the petition said.
It is a high-turnover, low-margin industry and in recent months the business had experienced challenging trading conditions.
The cost of cattle at marts has grown significantly and the company has not been able to afford to buy as many cattle as in previous years.
More farmers have also been selling directly to the factories, rather than going to marts, and there have been increased costs on the land the company leases.
On October 29 this year, Cork Cooperative Marts Ltd demanded payment of some €351,000 with a warning that if not paid within 21 days, a petition to wind up the company would issue.
The company acknowledges this debt is due, the petition said.
Mr Justice Cregan said he was satisfied to appoint Mr Massey and Mr Glennon as provisional liquidators and take control of the company and he adjourned the matter to next month.
