There’s a long history of strategic collaboration, mergers and joint ventures among co-ops in other jurisdictions.
ADVERTISEMENT
It’s fair to say that the reaction among milk suppliers and shareholders to the talks between Aurivo co-op and Dale Farm co-op has been positive. There’s a long history of strategic collaboration, mergers and joint ventures among co-ops in other jurisdictions.
Global dairy giants such as Fonterra, Dairy Farmers of America, Arla, Friesland Campina and Valio are all co-ops that emerged as powerhouses through mergers. The latest merger is between Arla and German co-op DMK, which, if approved, will see the new co-op process over 18bn litres of milk annually.
The history in Ireland is markedly different, whereby co-ops tend to only merge during periods of strife. As a result, Ireland still has lots of smaller co-ops that are competing with these big players in international markets.
ADVERTISEMENT
As processing costs increase, remaining competitive in the global market while paying a good milk price at home is going to become more challenging. The explorations around cost cutting by the boards of Aurivo and Dale Farm are welcome. Aidan Brennan goes into more detail on the move and what it means for farmers on pages 32-33.
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
It’s fair to say that the reaction among milk suppliers and shareholders to the talks between Aurivo co-op and Dale Farm co-op has been positive. There’s a long history of strategic collaboration, mergers and joint ventures among co-ops in other jurisdictions.
Global dairy giants such as Fonterra, Dairy Farmers of America, Arla, Friesland Campina and Valio are all co-ops that emerged as powerhouses through mergers. The latest merger is between Arla and German co-op DMK, which, if approved, will see the new co-op process over 18bn litres of milk annually.
The history in Ireland is markedly different, whereby co-ops tend to only merge during periods of strife. As a result, Ireland still has lots of smaller co-ops that are competing with these big players in international markets.
As processing costs increase, remaining competitive in the global market while paying a good milk price at home is going to become more challenging. The explorations around cost cutting by the boards of Aurivo and Dale Farm are welcome. Aidan Brennan goes into more detail on the move and what it means for farmers on pages 32-33.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS