The news that both Dale Farm Co-Op and Aurivo Co-Op are now at advanced stages of putting a plan in front of farmers around a merger will come as no surprise to many.
The likelihood is that we will see further consolidation in Irish dairy co-ops in the years ahead as changing global trade patterns, supply curves and economies of scale require leaner, more streamlined dairy businesses capable of coping with sudden shifts in the marketplace.
The talks have been well flagged during 2025, and following a few more hurdles to jump, the plan is almost ready to be presented to members.
Looking back at other mergers that have taken place in recent years, they always happened on the back of one of the partners in the merger essentially needing the merger for survival.
This isn’t the case for the Dale Farm/Aurivo talks, and both are coming on the back of solid performance in the last number of years.
Dale Farm saw a 14% increase in turnover in 2024 to €859 million, along with a 7% rise in pre-tax profits.
Aurivo also recorded a 13.5% increase in turnover to €725 million in 2024. This came from €290 million in dairy ingredients, €158 million in consumer foods, €160 million in agribusiness and €117 million in marts.
Looking back at other mergers that have taken place in recent years, they always happened on the back of one of the partners in the merger essentially needing the merger for survival
Interestingly, Aurivo has been looking to grow their agri store footprint in recent years and the merger could open up opportunities for the joint entity to open new stores in Northern Ireland.
Good foresight
Operating profit at Aurivo was €17 million in 2024. The fact that both co-ops are coming from a strong position and are still looking at strengthening their businesses shows good foresight, and that is something that should be welcomed.
The Sligo-based co-op is owned by 10,000 shareholders, many of whom are not milk suppliers, and communicating the merits of the proposal to these “dry” shareholders will be key to getting the deal across the line. Dale Farm Co-op has 1,300 dairy farmer members.
What is important in the coming months is that shareholders of both co-ops go to the shareholder information meetings and make an informed view from what they hear at these meetings.
In the modern age, sometimes we can be easily swayed by megaphone diplomacy on social media or other channels, and one individual’s particular issue is suddenly adopted by many and all of a sudden you have a movement on social media against the proposal.
However, if asked, many of these people may not fully understand the nature of the proposal. There will be many opportunities over the coming months to sit down and study what the merger means for you as a farmer shareholder and what the bigger picture might look like in five to 10 year’s time.
Sometimes tough decisions need to be taken to protect the long-term sustainability of the business.
Aurivo Milk Tanker.
Like any merger, there will likely be winners and losers. Aurivo and Dale Farm have indicated that the merger isn’t just about making two businesses bigger, they also have to be better, delivering lower costs, more opportunities and less risk and ultimately, a better milk price for their farmer suppliers.
The deal will require 75% of members of each co-op to approve to go ahead, so it is not an easy task and communication of the vision for the joint entity along with as much detail as possible for co-op members will be key in the weeks ahead.
The news that both Dale Farm Co-Op and Aurivo Co-Op are now at advanced stages of putting a plan in front of farmers around a merger will come as no surprise to many.
The likelihood is that we will see further consolidation in Irish dairy co-ops in the years ahead as changing global trade patterns, supply curves and economies of scale require leaner, more streamlined dairy businesses capable of coping with sudden shifts in the marketplace.
The talks have been well flagged during 2025, and following a few more hurdles to jump, the plan is almost ready to be presented to members.
Looking back at other mergers that have taken place in recent years, they always happened on the back of one of the partners in the merger essentially needing the merger for survival.
This isn’t the case for the Dale Farm/Aurivo talks, and both are coming on the back of solid performance in the last number of years.
Dale Farm saw a 14% increase in turnover in 2024 to €859 million, along with a 7% rise in pre-tax profits.
Aurivo also recorded a 13.5% increase in turnover to €725 million in 2024. This came from €290 million in dairy ingredients, €158 million in consumer foods, €160 million in agribusiness and €117 million in marts.
Looking back at other mergers that have taken place in recent years, they always happened on the back of one of the partners in the merger essentially needing the merger for survival
Interestingly, Aurivo has been looking to grow their agri store footprint in recent years and the merger could open up opportunities for the joint entity to open new stores in Northern Ireland.
Good foresight
Operating profit at Aurivo was €17 million in 2024. The fact that both co-ops are coming from a strong position and are still looking at strengthening their businesses shows good foresight, and that is something that should be welcomed.
The Sligo-based co-op is owned by 10,000 shareholders, many of whom are not milk suppliers, and communicating the merits of the proposal to these “dry” shareholders will be key to getting the deal across the line. Dale Farm Co-op has 1,300 dairy farmer members.
What is important in the coming months is that shareholders of both co-ops go to the shareholder information meetings and make an informed view from what they hear at these meetings.
In the modern age, sometimes we can be easily swayed by megaphone diplomacy on social media or other channels, and one individual’s particular issue is suddenly adopted by many and all of a sudden you have a movement on social media against the proposal.
However, if asked, many of these people may not fully understand the nature of the proposal. There will be many opportunities over the coming months to sit down and study what the merger means for you as a farmer shareholder and what the bigger picture might look like in five to 10 year’s time.
Sometimes tough decisions need to be taken to protect the long-term sustainability of the business.
Aurivo Milk Tanker.
Like any merger, there will likely be winners and losers. Aurivo and Dale Farm have indicated that the merger isn’t just about making two businesses bigger, they also have to be better, delivering lower costs, more opportunities and less risk and ultimately, a better milk price for their farmer suppliers.
The deal will require 75% of members of each co-op to approve to go ahead, so it is not an easy task and communication of the vision for the joint entity along with as much detail as possible for co-op members will be key in the weeks ahead.
SHARING OPTIONS