NEWMARKET Co-Op was keeping its cards close to its chest this week as speculation mounted that it is to be taken over by the Kerry Group.

Reports in the last week have suggested that the Kerry Group have made initial overtures to buy Newmarket Co-Op, while the possibility that they are seeking increased co-operation has also been mooted.

However, Michael Cronin, chief executive of Newmarket Co-Op, told The Corkman on Wednesday that while he is aware of the current speculation about "a possible link up" between the co-op and the Kerry Group he said they were "not in a position to comment on that speculation".

"It's important for everyone to understand that Newmarket Co-Op has made no announcements regarding the current speculation," said Mr Cronin. "However, of course we will keep our milk producers, shareholders and staff updated on any matters that need to be brought to their attention on this matter."

Mr Cronin said: "We have a long standing business relationship whereby we purchase milk from Kerry and they in turn purchase a considerable volume of cheese on a regular basis".

He added that the co-op had "consistently paid a top price to its milk producers over many years," and has a "strong balance sheet".

Newmarket Co-op has a highly efficient cheese plant with capacity to process some 60 million gallons of milk and last year it completed a €16.8 million expansion of the plant.

However, Meelin-based Cllr Timmy Collins (Ind) said he believes "there is no smoke without fire, and I do believe that the Kerry Group will take over Newmarket Co-op".

He said he is also in fear for the jobs at the coop. "I'm a silent shareholder and do not supply milk, but yet the silent shareholder could well benefit more than a supplier if this mooted proposal goes through," he said.

At last Friday night's milk crisis meeting in Kanturk, chairman Donie Shine of the National Milk Rights Group (NMRG) said: "There was great discontent at the meeting at the way the farmers found out that there could well be a proposal to sell Newmarket Co-Op to the Kerry Group.." (for more on that meeting see Page 15)

The Corkman also spoke to a farmer in Duhallow who said: "The farmer who supplies milk and has done so for countless years could well find themselves outnumbered in a vote off. There are about 700 shareholders, but the important crux is that there are only about 135 active milk producers, the rest are silent shareholders. There is, of course, the very real fear that the silent shareholders will cash in their shares and walk away with a lot of money. "The question then is what position will the farmer who supplies milk be left in. We are now in a 'wait and see' process."

- MARIA HERLIHY