The Northern Ireland headquartered co-op, Dale Farm and the Sligo headquartered co-op, Aurivo, are understood to be in discussions over their potential future ‘trading relationship’.
It is believed that members of both co-ops have been told that both businesses are keen “to adopt a proactive approach to optimising market opportunities and maximising synergies in an escalating cost environment”.
Agriland understands that representatives from both Aurivo and Dale Farm are working together on a project to “scope potential cost synergies” and build on an existing relationship between the co-ops.
Both Dale Farm and Aurivo have been keen to communicate to their respective members that both co-ops “have a shared ethos” and also share the same core values .
It is understood that discussions are continuing between the co-ops as to how they could work together to “maximise” synergies that would deliver a long term benefit to shareholders.
Trading relationship
The fact that the Sligo headquartered co-op and the Northern Ireland headquartered co-op are keen to explore how they might grow their “trading relationship” highlights the pressures facing co-ops in the current market enviromnent.
In its 2024 annual report Aurivo highlighted the challenge posed by “ongoing geopolitical issues and inflationary pressures”.
Aurivo, which is owned by 10,000 farmers and their families, reported a group turnover up 13.5% to €725.1 million and increased operating profits of €17 million for 2024.
Aurivo, which acquired the Arrabawn liquid milk and butter business just a year earlier, has a milk pool of 516 million litres.
Meanwhile Dale Farm reported a 14% year-on-year jump in turnover to £722.4 million for the year ending March 2025.
The co-op, which is owned by 1,300 dairy farmer members, also saw its net pre-tax profit increase by 7% to £31.9 million, up from £29.8 million a year earlier.
Dale Farm has previously expressed its ambition to expand its milk pool in Northern Ireland by up to 1% per annum over the next decade.
