‘A very good fit’: Aurivo expresses interest in talks with LacPatrick
Aurivo has expressed its interest in talks with LacPatrick Dairies, believing that an arrangement between the two co-operatives would be a “good fit”.
In a statement released by Aurivo, the western co-op said: “Aurivo has noted the developments in LacPatrick Dairies in recent days and, following a meeting on Monday, the board of Aurivo has agreed to participate in its formal process to assess strategic options.
We believe that there would be a very good fit between the businesses of LacPatrick and Aurivo, given our complementary dairy portfolios and milk pools across the Republic and Northern Ireland.
“The consolidation process, in which Aurivo has a successful history, would strengthen our commitment to improving the lives of our member owners in the combined business,” the statement concluded.
Meanwhile, yesterday an Irish Farmers’ Association (IFA) – led by Ulster North Leinster chairman Nigel Renaghan, National Dairy chairman Tom Phelan and Monaghan county chairman Frank Brady – met with LacPatrick to discuss last week’s announcement of being open to a merger or partnerships.
“On behalf of our members, we have today expressed their legitimate concerns as to what this move will mean for them. It is essential that the livelihoods of milk producers supplying LacPatrick would not be negatively affected in the process,” Reneghan said.
Phelan added: “Farmers who are shareholders in their co-op depend critically on the health of the business, and its ability to meet its obligations, to collect, process and pay for their milk.
In the days ahead, it is essential that LacPatrick would work to rebuild farmers’ confidence on this front.
“Longer term, the co-op must explore what options are open to consolidate the business long term, without compromising its co-op ethos in the best interest of the farmers,” Phelan noted.