Irish dairy cooperative Aurivo will invest €48 million over the next five years across its dairy ingredients, consumer foods and agricultural businesses.
Key to delivering the firm’s expansion programme is an “extensive upgrade” of its dairy ingredients facility in Ballaghaderreen, Ireland, which is already underway and encompasses the creation of a production facility that enables innovative new product development.
Investment so far has enabled Aurivo to increase its milk supply by 8% in 2017. A €26 million investment in the installation of a new dryer for the site will commence next month and is critical to the business achieving its growth plans.
Once completed, capacity at Aurivo’s dairy ingredients facility will increase by 50% and it will produce over 50,000 tonnes of milk powders and 15,000 tonnes of butter annually on the site.
Aurivo chairman Pat Duffy said: “All our investment decisions and developments at the co-operative are designed to ensure that Aurivo is well positioned to take advantage of all future market opportunities for our 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 organisations in the country.”
Aaron Forde, CEO of Aurivo, added: “Our strategic focus and the supporting investment programme 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.
“With our enhanced facilities, Aurivo will compete strongly in serving our existing customers and will also enable us to access new international markets. This is all about working to achieve our vision to outperform our peers by becoming leaders in our chosen markets, regionally, nationally and internationally.
“One of our key strategic targets is to grow by 25% from a 400 million litre milk business to a 500 million one by 2022. That is well within our grasp and our organic growth plans for the business.
“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.”
© FoodBev Media Ltd 2019