Arrabawn is set to lose a liquid milk contract with one of its major customers, AgriLand understands.
Industry sources have indicated to AgriLand that Arrabawn is imminently set to lose its Tesco milk supply contract.
As of next week, Tesco will be supplied by Glanbia and Aurivo in the short term, to fill the shortfall.
When approached by AgriLand, a spokesperson for Arrabawn said: “Arrabawn does not comment on contracts with customers.”
Meanwhile, a spokesperson for Glanbia said:
Glanbia Ireland does not comment on arrangements with individual customers.
“Glanbia Ireland is a leading provider of market leading consumer dairy products and private label liquid milk from our network of family farms.”
A spokesperson for Aurivo was not available for comment.
Last year, some 536 million litres of liquid milk were produced by Irish processors, according to Central Statistics Office (CSO) figures.