It’s often a relatively small issue that does the most damage. On the face of it, the news that two of Glanbia’s 4,300 milk supplier accounts are being investigated for potential breaches of milk quota rules is a minor story. However, there is significant concern at the highest levels of Glanbia over the issue.

The facts at this point are not easy to establish. I can confirm that the Department of Agriculture is investigating whether specific GIIL milk collections breached milk quota rules. If proven, this would have significant implications for the farmers concerned. Fines of up to €120,000, a clawback of monies paid for the milk irregularly supplied, and potential criminal proceedings could ensue.

My understanding is that the Department received an anonymous letter making allegations of impropriety last week. It immediately started an investigation, with the Special Investigations Unit raiding both farms and visiting Glanbia’s Ballyragget processing plant on Thursday. It is surprising that national media, in the shape of The Sunday Times, were on the case almost as quickly, with milk quota making a rare appearance as lead story in the Business section.

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Contrary to The Sunday Times contention, the board was not informed of this investigation until late last week. There is serious concern within the boardroom that this story has the potential to damage Glanbia’s good name. The streets (or, should I say, fields) are rife with rumours as to the identity of the “farmer and businessman” involved.

The twin dangers to Glanbia are contagion (other parties being implicated in the story) and any hint of a cover-up.

A tricky few weeks are ahead. The Wexford deal is all but done, but a significant number of suppliers are still threatening not to supply Glanbia. The market view of nutritional companies has been uniformly positive in recent times, but peer company Royal DSM has suffered a 10% drop in share price since announcing moderate results a couple of weeks ago. Glanbia’s share price still soars, touching €11 this week, but it’s all shaping up as Siobhan Talbot’s first big test as CEO.