Carbery Group is set to take and process some of the milk supplied to North Cork Creameries, Agriland understands.

Industry sources have indicated that a significant amount of milk will be involved.

The move comes as the Environmental Protection Agency (EPA) has again suspended the co-op's licence to discharge from its wastewater treatment plant.

It is understood that the arrangement between Carbery and North Cork Creameries is envisaged as a temporary one, while issues involving the latter's wastewater treatment plant are being resolved.

In November, the EPA issued a notice to North Cork Creameries, directing the co-op to suspend discharges from the wastewater treatment plant.

Last month, North Cork Creameries submitted information to show that it had maintained compliance for a set period, and the EPA lifted the suspension on January 7.

According to the EPA, over the six weeks since the notice was lifted, the co-op has "failed to maintain adequate control of the plant leading to ongoing non-compliances with emission limit values".

In a statement today (Friday, February 20), the EPA said that the dairy business has "not not demonstrated the capacity to reliably maintain steady state compliance with licence requirements" in relation to effluent at the discharge point.

According to the EPA, there is "once more an ongoing and elevated risk" of discharges that do not comply with relevant regulations and the emission limit values at the discharge point.

These discharges "threaten to cause an immediate adverse effect on the environment, in particular the ecological and chemical water quality of the River Allow", the EPA said.

The statement confirmed that a notice was served on North Cork Creameries yesterday (Thursday, February 19) to once again suspend the discharge from the wastewater treatment plant.

"The discharge will not be permitted to resume until the EPA receives demonstration and confirmation that the licensee can reliably maintain steady state compliance on an ongoingbasis," the statement added.