North Cork Creameries signs new agreement with Carbery

North Cork Creameries, a co-operative based in Kanturk, has reached a new commercial milk supply agreement with Carbery, a leading Irish dairy company. The agreement, announced on Thursday, April 2, aims to provide certainty for the creamery's milk suppliers by securing a dedicated processing outlet for their milk. While the specifics of the deal remain undisclosed due to commercial reasons, both parties have expressed satisfaction with the arrangement.

The new agreement between North Cork Creameries and Carbery is expected to deliver value to the farmer shareholders of both organisations. North Cork Creameries emphasised its commitment to paying a competitive milk price to its suppliers, with the agreement with Carbery set to support this objective. This development comes after a challenging period for the Kanturk-based co-op, which has been operating since 1928.

Recently, staff at North Cork Creameries faced uncertainty about their jobs at the Kanturk plant, following a decision to halt processing activities. This was prompted by the Environmental Protection Agency (EPA) suspending the dairy business's licence to discharge water from its wastewater treatment plant. The EPA issued a notice on February 19, ordering the co-op to suspend effluent discharge and outlining the standards it needed to meet in order to lift the suspension.

As a result of the EPA's intervention, Carbery Group began processing some of the milk supplied to North Cork Creameries. Discussions were then initiated to secure a more permanent arrangement for this processing. Although these discussions initially faced challenges, North Cork Creameries has now confirmed that the deal with Carbery Group has been finalised.

The agreement between the two dairy companies is seen as a positive development for the North Cork Creameries' milk suppliers, as it provides them with a dedicated processing outlet. This will help to stabilise their income and ensure a steady market for their produce. The co-op's focus on maintaining a competitive milk price further underscores its dedication to supporting its farmer members.

The recent turmoil at North Cork Creameries, including the temporary halt in processing activities and the EPA's intervention, has been a significant challenge for the co-op. However, the new agreement with Carbery marks a turning point, offering a path towards stability and continued growth for the organisation. As both parties work together to implement the new commercial arrangement, farmers supplying milk to North Cork Creameries can look forward to a more secure and prosperous future.