Aurivo and Dale Farm merger not up to Ornua

Ornua is not responsible for deciding whether Aurivo should enter a partnership or merger with Dale Farm, Ornua has told the Irish Farmers Journal.

Responding to comments made last week by Aurivo CEO Donal Tierney, in which he accused Ornua of holding up merger talks, Ornua said they “are focused on addressing it [the shares issue] with due diligence.”

If an Ornua member co-op such as Aurivo merges with a non-member co-op such as Dale Farm, then their shares in Ornua can be redeemed at par value.

The statement from Ornua said it “supports the wishes and ambitions of our members to co-operate with industry partners” and went on to say that it respects Aurivo and Dale Farm and “values their commitment to supporting their respective farmer suppliers”.

“What is relevant and critical to Ornua, is to fully understand the impact a merger or partnership, if any, would have on the co-operative and the Kerrygold brand, as well as on Aurivo’s position as a shareholder of Ornua,” it said.

“The Ornua board is obliged to act in the best interests of Ornua and the Kerrygold brand for the benefit of all our members. Ornua stands on more than 60 years of member and farmer investment, and it is our duty to safeguard and future-proof this investment for all our members and the farmers we represent. It would be remiss, therefore, of Ornua not to give this careful due consideration.”

Dale Farm

Meanwhile, a spokesperson for Dale Farm said that both it and Aurivo continue to see clear opportunities from both co-ops working together.

“There are a number of stages we need to get through and challenges to navigate before we have a clear view of what potential partnerships might look like. It will take time, there are strategic considerations required by both cooperatives and a range of complex regulatory issues that will need to be worked through if this is to progress,” the spokesperson said.