Dairygold may cut further 300 jobs
Up to 600 jobs are involved and potentially half of them could be axed depending on the recommendations in the report.
Recently the group announced a further cutting of jobs in its Galtee division with up to 270 jobs for the chop.
That means more than 1,000 jobs have been shed by the group in the past 18 months.
Initially the dairy division was due for review at the end of March when the group expected to have a report available to chief executive, Jerry Henchy.
Difficulties in the division proved more difficult to resolve and the report will not be available until shortly before Christmas, it is understood. Four plants are involved in the internal review. Two are situated in Mitchelstown, one in Mallow and the other at Mogeally, where the smallest number of jobs are at stake.
Primary milk processing is costing the group money where the margin is just 1.6%.
At this juncture the co-op manufactures seven different products at four sites. But Mr Henchy has hinted only cheddar and brine cheeses will remain in the product mix going forward.
A spokesman for the group could not say what the implications of that move were.
Job losses in the dairy sector could be as low as 1200, he said.
Meanwhile, the group had talks with Carbery Group in Ballineen, with a view to doing a joint venture on some cheese production.
Those talks failed to deliver and the group is looking to internal solutions to drive the dairy division forward. Recently Mr Henchy called for a radical shake up of the dairy board.
In Ireland the dairy sector will have to seriously review its attitude to research and development.
In a statement aimed at farmer earnings he asked if this should be funded from farmer income.
Mr Henchy has stressed the need for serious cost eradication in the sector and said the dairy board has to look closely at its own set up.
An evaluation of whether it makes sense to hold on to non-core assets when looking at innovation and product development is necessary.
Mr Henchy called for the targeting of markets for emerging products and cited examples such as the US for nutrition; Britain for cheese flavour/textures; China for dairy ingredients; the southern mediterranean for medium and hard cheese; and the US and Britain for food service products.
