LacPatrick has instructed EY, a top financial advisory firm, to draw up a profile of its current financial and trading performance, the Irish Farmers Journal understands.

The report is expected to be finalised by next week and given to four co-ops which have expressed an interest in merger discussions. They are Aurivo, Glanbia, Lakeland Dairies and Dale Farm.

It is understood the four will then be invited to submit an initial merger proposal to LacPatrick. It is expected that one bidder will then be given exclusive right to negotiate with the Co Monaghan-based co-op and carry out a due diligence process. This could all happen this month.

There is continuing unrest among LacPatrick suppliers and the Irish Farmers Journal understands a number of them in the Republic have now made contact with other nearby co-ops about joining. There will be intense focus on LacPatrick’s milk price for April supply which will be set in two weeks’ time.

Any outline merger proposal put to LacPatrick will have to cover traditional co-op issues such as ownership of a merged business and farmer representation. But it will also have to address sensitive issues such as sharing up and milk supply agreements which have come into more focus after the ending of milk quotas.

Aurivo and Dale Farm have announced interest in a tie-up with LacPatrick. Glanbia and Lakeland have not done so publicly but have acknowledged LacPatrick’s position.