Dairy cooperatives Dale Farm and Aurivo have today (Friday, January 20) announced a “strategic partnership”.
Following detailed discussions over recent months, both co-ops have decided that now is not the right time to proceed with a merger process.
The boards of both cooperatives have agreed to work together on projects including by-product utilisation and added value protein.
The co-ops told Agriland that building on the close working relationship developed between the entities over the past five years, the partnership will enable both organisations to maximise synergies, optimise market opportunities and drive operational excellence.
A steering group with representation from both cooperatives is being set up to guide the strategic partnership.
Work on the initial projects identified will begin immediately.
Group Chief Executive, Dale Farm Nick Whelan said: “We have built a strong and trusted relationship with Aurivo over the past five years, and today’s announcement marks another important step for both cooperatives, and for the wider dairy sector on the island of Ireland.
“Our industry already has a worldwide reputation for quality, sustainability and innovation.
“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.”
Meanwhile, Donal Tierney, CEO, Aurivo, said: “Aurivo and Dale Farm share the same ethos as farmer-owned, community-focused cooperatives.
“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.
“This partnership sees two commercially strong dairy businesses work together to enhance processing efficiency, improve market returns and deliver long-term value.”
