A stand-off between contract milk hauliers and Kerry Agribusiness in Co Clare is expected to spread into Limerick and north Cork.
Contract hauliers in the county have stopped sampling milk at the farm gates in an escalation of their dispute over a plan to put their work out to tender. Sampling of milk is an essential part of the traceability and quality testing process and is also used to determine the amount to be paid to each individual supplier.
The hauliers have been threatened with the termination of their agreement over their action, and they have also been told that they will be liable to Kerry Agribusiness for any loss and damage it may suffer.
The hauliers predict that the months-long dispute could spread to Limerick and north Cork where they have been promised support from the newly formed Charleville Milk Hauliers Association who fear that they may also see their contracts put out to tender eventually.
A Kerry Agribusiness spokesman said that the milk sampling was "a fundamental part of their contract".
He added that the tendering plan was part of a rationalisation programme aimed at increasing competitiveness and insuring a better price for farmers.