Newtownsandes Co-op has appointed Cork accountancy firm Moore Stephens to independently assess a number of different merger and milk processing options.

The process has arisen because Kerry Group is to cease processing Newtownsandes milk in March 2018. Newtownsandes has no processing facilities of its own.

In recent years, it has sent almost two-thirds of its 23m litre milk pool to Kerry’s plant in nearby Listowel and the balance for processing at North Cork Co-op.

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The decision by Kerry Group has forced Newtownsandes management to explore other options. It has agreed terms with Tipperary Co-op under which Tipperary would process the 13m litres now going to Kerry. It has also agreed terms with North Cork Co-op for sending all its milk to that co-op.

A group of Newtownsandes biggest suppliers approached Arrabawn. That co-op said it is more interested in a merger than in offering a processing deal. In light of this, Tipperary and North Cork have indicated they too would be interested in a merger.

Moore Stephens will look at all options and report back to Newtownsandes, with recommendations, by mid-December.

The group of active suppliers favours merging into one of the bigger co-ops on the basis this would give them permanent processing rights. Another processing deal would leave them in continued uncertainty, they believe. They favour a merger with Arrabawn as they believe its the “strongest” of the three co-ops.