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Irish dairy company Aurivo has invested €6 million to create a sustainable liquid milk facility at its site in Killygordon, County Donegal.

Forming part of the cooperative’s €48 million capital investment programme that was announced last year, the project will double the processing capacity of the plant, which produces a variety of fresh milk products for brands such as Donegal Creameries, Connacht Gold and Organic for Us.

The upgrades, which were unveiled by Ireland’s Minister for Education and Skills, Joe McHugh, will allow the Killygordon milk plant to reduce on-site fossil fuel consumption by 80%.

A larger pasteuriser, separator and homogeniser and milk standardising equipment have all been installed.

“As the second largest liquid milk processor in the country, this investment enhances and solidifies our market position,” said Aaron Forde, CEO of Aurivo. “The increased capacity aligned with cost efficiencies and positive environmental impacts readies our Killygordon plant for long term sustainable growth and contributes significantly to Aurivo and its consumer foods business.

“This investment, along with others as part of our five-year growth strategy, works to ensure that all our efforts are directed to doing the best job possible to maximise the return to our member-owners while maintaining a strong sustainable business.”

Pat Duffy, chairman of Aurivo, added: “On behalf of the board of Aurivo, I am very pleased to unveil this phase of our investment programme in Killygordon. This investment could not be possible but for our valued suppliers in the northern half of Ireland.

“These are indeed challenging times for the Irish dairy sector and we are acutely conscious that in the event of a no-deal Brexit, with dairy products being hit the hardest, the impact of tariff barriers and bureaucracy will have a hugely negative impact on farmers north of the border.

“As a co-op, Aurivo is focused on making our suppliers’ businesses as profitable and sustainable as possible, and since Brexit became a reality in 2016, we have been developing plans to ensure that we can efficiently process and market Northern Ireland milk supply over the coming years.”