Kerry Group have reached an agreement with Tipperary co-op on a processing arrangement that will involve milk from the country’s second largest processor being diverted to the Tipperary town based operation at specific times of the year.

In response to enquiries from the Irish Farmers Journal, a Kerry Group spokesman confirmed that an existing arrangement with Tipperary co-op has been extended.

A number of Irish processors send milk to Tipperary co-op, as the plant has surplus capacity and traditionally remains open in low milk volume months while others are closed.

Up to half of the milk processed at the plant is imported from outside the co-op’s catchment.

It is suggested that the latest Kerry arrangement may be linked to ongoing investment projects at the Group’s Listowel, Charleville and Newmarket plants. Kerry Group announce their results for the 2013 financial year next Tuesday.