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Aurivo, Dale Farm and Lakeland have all declared an interest in LacPatrick Dairies after the co-op announced last week that it was open to merger talks.
Following a meeting on Monday, the board of Aurivo agreed to participate in its formal process to assess strategic options, a statement said.
Speaking to the Irish Farmers Journal this week, Aurivo chief executive Aaron Forde said: “Yes, we are interested in exploring options with LacPatrick.”
But he said Aurivo will “continue to grow [its] business with or without LacPatrick”.
Forde said that based on conversations with Aurivo suppliers, there is at least another 70m litres of milk growth to come for Aurivo in the next few years.
This would make it a 500m-litre processor before it talks to any other processors. It comes after Dale Farm announced last week that it has an “interest” in developments at LacPatrick.
Lakeland Dairies said that it has noted the announcement made by LacPatrick, with a spokesperson adding: “LacPatrick is a substantial business with a strong heritage in co-operative dairy farming.”
Glanbia hasn’t declared an interest in LacPatrick.
When asked if LacPatrick has decided to formally sit down for merger talks with any co-ops, a LacPatrick spokesperson told the Irish Farmers Journal that “as a process has commenced, it would be inappropriate to comment on any third-party”.
“LacPatrick has communicated directly with farmers as well as with farm organisations thus far and will continue to do so. No decision on the future of LacPatrick will be taken without approval of shareholders,” the spokesperson said.
The Irish Farmers Journal understands that a five-member committee has been set up to lead negotiations on behalf of LacPatrick. This committee includes the board chair, his two vice-chairs, but does not include the chief executive, Gabriel D’Arcy. He has been tasked with continuing to run the business in the interim period.
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