Aurivo grows and looks to acquisitions as €48m investment program announced

By Jim Cornall

- Last updated on GMT

Aurivo said the investment is designed to ensure it is well positioned to take advantage of future market opportunities for its milk producers.
Aurivo said the investment is designed to ensure it is well positioned to take advantage of future market opportunities for its milk producers.

Related tags: Milk, Dairy, Ireland, Feed

Irish agri-business Aurivo has announced the investment of €48m ($54.8m) as part of its Engage 2022 strategic growth plan.

The expansion program incorporates a range of projects across its dairy ingredients, consumer foods and agri businesses and will grow employment across the cooperative between now and the end of 2022.  The investment has been supported by the Department of Business, Enterprise and Innovation through Enterprise Ireland.

Key to the expansion is an upgrade of its dairy ingredients facility in Ballaghaderreen, which is already under way, and encompasses the creation of a production facility that enables new product development and positions Aurivo to meet global demand and anticipated market growth.

Increased capacity

Investment to date has supported Aurivo to increase milk supply by 8% in 2017. A €26m ($29.7m) investment in the installation of a new dryer for the site will commence next month. Once completed, capacity will increase by 50% and will produce more than 50,000 tonnes of milk powders and 15,000 tonnes of butter annually on the site.

The investment focuses on all areas of Aurivo’s business and includes new Homeland retail store openings in the north west of Ireland, and safety and efficiency related matters across its Livestock Marts business. It also incorporates an expansion to Aurivo’s feed manufacturing site in Ballaghaderreen. 

Aurivo’s Agribusiness, which manufactures the NUTRIAS brand of animal feed, has experienced several consecutive years of sustained double-digit growth and the expansion and additional capacity at the feed mill, which will meet customer requirements in relation to volume and product choice, is also expected to generate demand for additional skilled workers in manufacturing and ancillary services.

Future opportunities

Pat Duffy, chairman of Aurivo said all the cooperative’s investment decisions and developments are designed to ensure Aurivo is well positioned to take advantage of future market opportunities for its milk producers.

“Our focus as a business is all about growth and how we can effectively continue to be one of the strongest member-owned organizations in the country,”​ Duffy said.

Acquisitions possible

Aaron Forde, CEO of Aurivo said, “Our strategic focus and the supporting investment program aims to ensure that Aurivo will continue to grow the business over the coming five years and in doing so we will effectively leverage international market growth potential for the business.”

He added Aurivo will also be able to access new international markets. 

“One of our key strategic targets is to grow by 25% from a 400m liter milk business to a 500m one by 2022. That is well within our grasp and our organic growth plans for the business,” ​Forde said. 

“Aurivo operates from a strong financial platform. So, aligned to our organic growth plans which this investment programme focuses on, we will continue to look at suitable acquisitions and business partnerships that have the potential to deliver value to the business on behalf of its members.” 

Related topics: Manufacturers, Fresh Milk

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