Two groups have combined turnover of almost €1.5bn, as well as ‘shared ethos’
Aurivo generated revenue of €725m last year, its accounts show, while Belfast-headquartered Dale Farm had turnover of £631m (€723m) in its 2024 financial year.
Last year, Dale Farm posted earnings before interest, tax, depreciation and amortisation (Ebitda) of £45m, while Aurivo’s Ebitda was €27.3m.
The firms recorded operating profits of £36m and €17m respectively during their past financial years.
Aurivo confirmed that the two co-ops are in discussions to expand their partnership.
“Over the past five years, Aurivo and Dale Farm have built a strong and trusted trading relationship,” a spokesperson said.
“Both businesses continue to adopt a proactive approach to optimising market opportunities and maximising synergies in an escalating cost environment.
“To support this process, Aurivo and Dale Farm have established a small team to scope potential cost synergies. Both businesses have a shared ethos and share core values as farmer-owned, farmer-centred co-operatives.
“Discussions are ongoing to explore how Aurivo and Dale Farm could work together to maximise these synergies, to the benefit of their shareholders and the long-term sustainability of their co-operative.”
Aurivo owns brands such as Connacht Gold, Donegal Creameries, Dawn and Arrabawn.
Dale Farm’s brand portfolio includes Dromona and Mullins.
Dale Farm has about 1,300 farmer members and owners and is the largest farmer-owned co-op in the UK.
The group has a milk pool of about 940 million litres and exports to more than 40 markets.
Aurivo chief Donal Tierney
Aurivo has a milk pool of about 516 million litres and its €631m of sales in Ireland last year include sales made to Ornua Co-op for export both within the European Union and outside the trading bloc.
Of Aurivo’s turnover last year, €158m was generated from consumer foods, nearly €300m from dairy ingredients, €160m from agribusiness and €117 from marts.
When Aurivo released its 2024 results earlier this year, chief executive Donal Tierney said that the group had seen “steady progress” during the period following a difficult 2023.
“The current global situation relating to tariffs and the consequent uncertainty over the past number of months is concerning for the sector and the wider economy as a whole, with some global commodity markets – notably oil and metals – very volatile in the past few months,” Mr Tierney said.
“Notwithstanding the inevitable headwinds that face us, we believe the strategic and financial position of the co-op provides a sound basis to deliver ongoing sustainable growth for our member owner.”
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