Staff at North Cork Creameries have been informed by management there that their jobs at the plant in Kanturk, Co. Cork are at risk, it is understood.

This is because the plant has been forced to cease processing activity, after the Environmental Protection Agency (EPA) suspended the dairy business' licence to discharge water from its wastewater treatment plant.

Almost 100 jobs are likely to be lost at the plant.

It is understood that the level of investment required to remedy the issues with the wastewater treatment plant cannot be met by the processor at this time, meaning the plant largely cannot operate.

Sources have said that this will result in most of the site being closed, with the possible exception of some butter production.

Management met staff yesterday (Thursday, March 4) and informed them of this situation.

Agriland understands that, although the business has not entered into a formal consultation with staff on redundancies (as would be required when so many employees are involved), it is highly likely that such a consultation will commence in due course.

The deal with Carbery Group to process milk from North Cork Creameries' suppliers will be a long term situation.

Industry sources have said that this will mean impacted farmers are protected.

However, it is understood that the plan to close most of the site and sell milk supply to Carbery Group has resulted in a split in the board of North Cork Creameries, with the chairperson Thomas O'Donoghue resigning early yesterday morning.

It is understood a new chair has been appointed.

Sources have indicated that a small number of jobs will be retained, as the aim is to maintain the plant in working condition.

Industry sources have described this developments as "a complete disaster for the town of Kanturk", and that, apart from the almost 100 jobs likely to be lost, some 150 indirect jobs could also be impacted.

While the deal with Carbery Group lessens the impact for farmers, sources also pointed to the fact that North Cork Creameries also carried out contract processing for other processors.

Concern has also been expressed that the loss of the Kanturk site could impact on the dairy industry's total processing capacity during the upcoming peak milk supply season.