Dairy co-operatives Dale Farm and Aurivo have today announced a new strategic island of Ireland partnership.
The co-operatives said that after detailed talks and exploration over recent months, they have decided that now is not the right time to proceed with a merger process.
In a statement, the two boards said they have agreed to work together on projects including byproduct utilisation and added value protein.
“Building on the close working relationship developed between the co-operatives over the past five years, the partnership will enable both organisations to maximise synergies, optimise market opportunities and drive operational excellence,” they added.
Nick Whelan, group chief executive of Northern Ireland-based Dale Farm, said the co-op has built a strong and trusted relationship with Aurivo over the past five years.
“Today’s announcement marks another important step for both co-operatives, and for the wider dairy sector on the island of Ireland,” he said.
“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,” he added.
Donal Tierney, CEO of Aurivo, said the two co-ops share the same ethos as farmer-owned, community-focused co-operatives.
“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,” Mr Tierney said.
“This partnership sees two commercially strong dairy businesses work together to enhance processing efficiency, improve market returns and deliver long-term value,” he added.
