The board of Arrabawn Co-op is understood to have met this morning to discuss a possible merger with Tipperary Co-op.
The Irish Farmers Journal reports there is mounting speculation about the future of Tipp Co-op.
Any substantial deal would have to be put to shareholders in both coops for approval.
Rachael Donovan from the Farmers Journal says there is a considerable difference in the price being paid for milk by both co-ops.
“Your typical Tipp Co-op supplier for the month of July if you compare those to their neighbour who sends their milk to Arrabawn the Arrabawn supplier would have €953 plus VAT in their July milk cheque than the Tipp Co-op supplier.”