Arrabawn to cease processing at liquid milk plant in Galway

The board of Arrabawn Co-Op has decided to cease processing operations at its liquid milk plant in Kilconnell in east Co. Galway by summer of next year.

Arrabawn’s liquid milk contracts will be purchased by Aurivo, the co-op said. However, Arrabawn will retain ownership of the plant.

A statement from the business said: “Following a meeting, the board of directors at Arrabawn has decided to accept an offer from Aurivo to purchase Arrabawn’s liquid milk sales book.

“The site in Kilconnell is not included in the sale and Arrabawn is looking at options for alternative use.”

The co-op employs 110 people in this area of its business. Approximately half of these will transfer with the business, with redeployment opportunities also being made available to others across the wider business, Arrabawn said.

The deal will be subject to due diligence and approval from the Competition and Consumer Protection Commission (CCPC).

“Subject to the sale going ahead, it is anticipated that processing at the plant will continue until summer 2023,” Arrabawn said.

The co-op said that milk supply and upcoming liquid milk contracts will not be impacted by this decision, and that Arrabawn’s priority is “to support all employees and suppliers during the transition”.

It also said that a consultation process is underway with staff “to ensure all necessary supports are being provided during the transition”.

Roscommon-Galway TD Denis Naughten described the move as “a huge blow” for the staff at the plant as well as the surrounding rural area.

“This is also a significant blow to local liquid milk suppliers who have invested significantly in their dairy farms to ensure that the Kilconnell plant was provided with milk supplies 365 days a year,” Naughten said

He added: “Over recent years there has been significant investment in the plant which handles the liquid milk operations for Arrabawn Dairies, who supply own brand milk to many retailers throughout the country.