Aurivo Co-op and Dale Farm Co-op have announced that they are in talks about scoping out “potential cost synergies” and to “explore how Aurivo and Dale Farm could work together to maximise these synergies”.
The news was delivered to the milk suppliers of both co-ops in a text message last Thursday evening.
When contacted by the Irish Farmers Journal this week, Aurivo chair Raymond Barlow said that talks were ongoing and that he had no further comment to make at this time. Dale Farm CEO Nick Whelan also said that he had no comment to make.
Aurivo and Dale Farm have worked together over the last few years, with Aurivo previously processing some milk on behalf of Dale Farm.
Plant
Earlier this year, Dale Farm commissioned a new £70m (€80m) cheese plant at Cookstown which increases its cheese processing capacity to over 90,000t annually.
The Belfast-headquartered co-op is the largest farmer owned co-op in the UK and processes almost 1bn litres of milk annually across its four milk processing sites in Northern Ireland. It also owns the United Feeds animal feed company.
Dale Farm has pivoted to being primarily a cheese and whey protein concentrate -based business, and has its own ice cream and liquid milk brand.
The Aurivo Co-op dairy business is primarily based on liquid milk, butter and powders along with agri-stores and a mart business.
There are no indications yet as to what form any suggested synergies might take, but the Irish Farmers Journal understands that discussions are ongoing between the two co-ops.
SHARING OPTIONS