The Irish Farmers Journal understands that the proposed milk processing agreement between North Cork Creameries and Carbery Group, agreed last week has stalled.

The proposed agreement was due to run for a period of 10 years and would see North Cork Creameries continue to operate as a co-op, but rather than assemble and process milk, it would just assemble and manage the milk pool that is being delivered to the Carbery plant in Balineen.

The co-op held a series of information meetings over recent days where suppliers were informed that a 1c/l reduction in the Carbery base price would be paid to North Cork suppliers based on 100m litres of milk delivered.

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However, it is understood that the agreement included a clause that if milk volumes delivered to Carbery fell below 100m litres annually, the milk price paid would be 1.25c/l below the Carbery base price.

Similarly, if milk volumes delivered went below 75m litres annually, the price paid was to be 1.5c/l below the Carbery base price, excluding SCC and sustainability payments.

The Irish Farmers Journal understands that there was significant disquiet about the proposal at a meeting of Moyvane, Co Kerry based suppliers on Monday night, where details of the agreements were discussed.

Suppliers were being asked to sign a five year milk supply agreement with North Cork, which would prohibit them from moving to a different supplier during the term of that agreement.

On Tuesday, multiple sources close to North Cork Creameries confirmed that the Carbery deal is off the table.

It emerged last week that North Cork Creameries has decided to cease milk processing at the Kanturk processing plant, where the controversial waste water treatment plant that is the subject of the EPA closure notice is located.

There are now significant concerns growing about the future of the co-op as it embarks on a redundancy programme and seeks to find a new milk purchaser.

It is understood that as part of the deal with Carbery, a €2m annual payment was to be issued to North Cork in addition to the price being paid for the milk to run the co-op.

The future of the co-op and the livelihood of the milk suppliers across the catchment remains uncertain on Tuesday.

It is understood that interim CEO Michael Cronin had been leading the negotiations with Carbery Group.

The Irish Farmers Journal understands that regular board meetings are taking place between Cronin and the board of directors at this time.

Last week, the co-op chair Thomas O’Donoghue resigned as chair of the co-op at a board meeting before the deal with Carbery was ratified.