The Irish agricultural cooperative Aurivo has announced a €48 million investment plan for the business for the next five years.
The new expansion programme incorporates a range of projects across its dairy ingredients, consumer foods and agri-businesses and will grow employment across the Co-Operative between now and the end of 2022.
The move is ‘a key component’ of its Engage 2022 strategic plan, and the most recent investment has been supported by the Department of Business, Enterprise and Innovation through Enterprise Ireland.
The group revealed that its Dairy Ingredients facility in Ballaghaderreen is undergoing an ‘extensive upgrade’ which will result in a modern state-of-the-art production facility.
Aurivo said that the new facility will enable and enhance new product development and further allows the group to meet its growing global demand.
“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,” said Aaron Forde, CEO of Aurivo.
“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.”
Investment thus far has supported Aurivo to increase milk supply by 8% in 2017, and it added that a €26m investment in the installation of a new dryer for the site will commence next month.
The new dryer is ‘critical to the business’ in terms of achieving its growth plans, and it is expected to increase capacity at the facility by 50%, producing over 50,000 tonnes of milk powders and 15,000 tonnes of butter annually.
“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,” added Pat Duffy, chairman.
“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.”
“One of our key strategic targets is to grow by 25% from a 400 million litre milk business to a 500 million litre one by 2022. That is well within our grasp and our organic growth plans for the business,” Forde continued.
“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.”
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.