There is concern among suppliers to Newtownsandes Co-op in Co Kerry about where their milk will be processed after the end of this year.
A recent board meeting was told Kerry Group has indicated that it will cease taking Newtownsandes’ milk from the end of this year – because it wants to retain processing capacity for its own suppliers.
In recent years, two-thirds of the small co-op’s milk pool – about 14m litres – has been sold to Kerry and processed at the Listowel plant. It is just 10km from Newtownsandes’ head office and store.
However, the co-op and its suppliers did not build up any shares in Kerry or any right of access to processing capacity.
The balance of the milk pool – about 7m litres – goes to North Cork Co-op. It has indicated that it could take additional milk supply from Newtownsandes.
But the development has left suppliers concerned about their future.
A number of larger suppliers have approached another leading dairy co-op.
The resulting conversation ranged from individual suppliers joining to a more formal link-up with Newtownsandes.
The issue is likely to be discussed at Newtownsandes’ annual general meeting in 10 days’ time.
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