Aurvio has signed a €36m multi-year agreement with Tesco to supply 28m litres of milk and cream, as well as branded butter and milkshake drinks, to all of their stores nationwide.

At the announcement, Aurivo’s general dairy manager Stephen Blewitt said it will further strengthen its longstanding partnership with Tesco.

“Over 1,000 farming families will benefit from this supply deal, and the fact that Tesco can offer longer-term contracts, offers great security to our partners, farmers,” he said.

Aurivo, which includes the Connacht Gold, Donegal Creameries and Arrabawn brands, employs 700 people throughout the west of Ireland and exports to almost 50 countries.

Tesco Ireland commercial director Joe Manning said when exploring partnerships with new and existing Irish suppliers, sustainability is increasingly a key consideration for Tesco Ireland.

“Aurivo is a great example of a supplier that has partnered with us to apply a more sustainable lens to their products.

“In recent months, we have been working with them to replace the plastic sleeves on milk containers, with a smaller label, reducing plastic, which makes them easier to recycle for customers,” he said.

Total Irish supplier investment

Overall, Tesco said the renewal and expansion of its multi-year partnerships with Irish food suppliers will amount to €200m.

Over the coming weeks the retailer will reaffirm its commitments to several Irish brands including Irish Yogurts, Country Crest, Freshways, Silver Pail, Ballymaguire Foods, Bandon Vale and Crust & Crumb.

Minister for Agriculture Charlie McConalogue welcomed the announcement at an event to mark it in Donegal.

“This €200m investment announced by Tesco Ireland in Donegal represents a vote of confidence in the Irish agrifood sector, underlining the performance and value of our quality products and the significant economic contribution of our agri-food producers to our rural and national communities,” he said.

Speaking on the investment, Manning said Tesco is committed to providing customers with quality, choice and fresh and packaged products

“Fortunately, the Irish agrifood sector is similarly focused on delivering for our customers, which is why we are investing this €200 million in new and expanded agreements with several Irish agrifood suppliers,” he added.