The boards of Aurivo and Dale Farm have agreed to form a legal partnership which will see both co-ops work together on developing new value-add protein products.
The new partnership model is instead of a full merger, the details of which were discussed last week at shareholder meetings in the Aurivo catchment.
A joint statement issued to the Irish Farmers Journal said;
“Following detailed discussions and exploration over recent months, both co-operatives have decided that now is not the right time to proceed with a merger process.”
The Irish Farmers Journal understands that the partnership between the co-ops could be a precursor to a full merger after a few years.
Crucially, the partnership will allow Aurivo to retain full ownership and control of its assets, including the marts and agribusiness stores which was an issue repeatedly brought up by concerned shareholders at the meetings last week.
It is understood that the boards of both co-ops have identified significant savings and value-add opportunities from working together.
Key opportunities are said to include adding value to byproducts such as protein. Currently, Aurivo’s dairy business is centred around cream/butter and commodity-based milk powders, most of which are destined for the North African market.
Nick Whelan, CEO of Dale Farm said: “We have built a strong and trusted relationship with Aurivo over the past five years, and today’s announcement marks another important step for both cooperatives, and for the wider dairy sector on the island of Ireland.
Dale Farm CEO Nick Whelan and chair Fred Allen.
“Our industry already has a worldwide reputation for quality, sustainability and innovation. In an increasingly competitive global market, farmer-owned cooperatives on this island must continue to work together to unlock scale and support long-term growth.
“This partnership marks a historic moment for the industry and strengthens our ability to deliver value for our members and the sector as a whole.”
Donal Tierney, CEO of Aurivo said: “Aurivo and Dale Farm share the same ethos as farmer-owned, community-focused cooperatives. Through our collaboration in recent years, we have identified key areas where we can work together to benefit our farmers, shareholders and the wider dairy industry.
“This partnership sees two commercially strong dairy businesses work together to enhance processing efficiency, improve market returns and deliver long-term value. We’re excited for the future and ready to get started,” he said.
The boards of Aurivo and Dale Farm have agreed to form a legal partnership which will see both co-ops work together on developing new value-add protein products.
The new partnership model is instead of a full merger, the details of which were discussed last week at shareholder meetings in the Aurivo catchment.
A joint statement issued to the Irish Farmers Journal said;
“Following detailed discussions and exploration over recent months, both co-operatives have decided that now is not the right time to proceed with a merger process.”
The Irish Farmers Journal understands that the partnership between the co-ops could be a precursor to a full merger after a few years.
Crucially, the partnership will allow Aurivo to retain full ownership and control of its assets, including the marts and agribusiness stores which was an issue repeatedly brought up by concerned shareholders at the meetings last week.
It is understood that the boards of both co-ops have identified significant savings and value-add opportunities from working together.
Key opportunities are said to include adding value to byproducts such as protein. Currently, Aurivo’s dairy business is centred around cream/butter and commodity-based milk powders, most of which are destined for the North African market.
Nick Whelan, CEO of Dale Farm said: “We have built a strong and trusted relationship with Aurivo over the past five years, and today’s announcement marks another important step for both cooperatives, and for the wider dairy sector on the island of Ireland.
Dale Farm CEO Nick Whelan and chair Fred Allen.
“Our industry already has a worldwide reputation for quality, sustainability and innovation. In an increasingly competitive global market, farmer-owned cooperatives on this island must continue to work together to unlock scale and support long-term growth.
“This partnership marks a historic moment for the industry and strengthens our ability to deliver value for our members and the sector as a whole.”
Donal Tierney, CEO of Aurivo said: “Aurivo and Dale Farm share the same ethos as farmer-owned, community-focused cooperatives. Through our collaboration in recent years, we have identified key areas where we can work together to benefit our farmers, shareholders and the wider dairy industry.
“This partnership sees two commercially strong dairy businesses work together to enhance processing efficiency, improve market returns and deliver long-term value. We’re excited for the future and ready to get started,” he said.
SHARING OPTIONS