Glanbia has said it is continuing to engage in ''constructive discussions'' with its majority shareholder, Glanbia Co-Operative Society.
The talks are about creating a 40/60 joint venture in respect of its Irish dairy processing business, Dairy Ingredients Ireland.
Dairy Ingredients Ireland is a business unit of the Dairy Ireland division of Glanbia and is the largest dairy ingredients processor in Ireland.
The food group said the new joint venture's purpose will be to facilitate the continued development of the existing global dairy ingredients business including the flexibility to expand milk processing capacity after the abolition of EU milk quotas in 2015.
For any new processing capacity to be ready for 2015, a planning application needs to be submitted in early July, it adds. To this end, Glanbia is finalising an option to buy a new greenfield site at Belview, Co Kilkenny from IDA Ireland.
Glanbia's nearby Ballyragget site is the largest integrated dairy facility in Europe. This proposed Belview project would initially be two thirds the size of that again with room for expansion.
''Considerable progress has been made with the proposed transaction and while discussions are progressing well, it is now expected that these discussions will not be concluded before the end of August 2012,'' a statement from the company said.
IFA urges Glanbia board members to be 'ambitious'
The Irish Farmers Association has urged Glanbia board members to be ambitious in their final discussions and ensure that dairy farmers are put firmly back in control of their industry.
The IFA President John Bryan said any final decisions must facilitate greater transparency, collaboration and integration of future processing facilities within the region.
Mr Bryan challenged the Board to ensure there were no further cuts in milk prices in advance of the end of August deadline to finalise the deal between the co-op and the plc.
