Tesco Ireland has expanded its multi-year partnerships with Irish suppliers worth €200 million, including a €36 million deal with Aurivo.

The €200 million funding will be invested in the renewal and expansion of these partnerships.

These new agreements with several supplying business, will be finalised over the coming week, the retailer said today (Thursday, October 10).

As part of this investment, dairy co-op and processor Aurivo has agreed a €36 million multi-year deal with Tesco to supply 28 million litres of milk and cream, as well as branded butter and milkshake drinks, to all 177 of their stores nationwide.

Over 1,000 farms from 14 counties will continue to provide fresh milk daily to service the contract.

Aurivo, which includes the Connacht Gold, Donegal Creameries, and Arrabawn brands, employs 700 people in the west of Ireland, and exports to almost 50 countries.

Commenting on these soon-to-be renewed agreements with Aurivo and several other suppliers, Minister for Agriculture, Food and the Marine Charlie McConalogue said: “This €200 million investment announced by Tesco Ireland represents a vote of confidence in the Irish agri-food sector.”

The minister said the investment underlines “the performance and value of our quality products and the significant economic contribution of our agri-food producers to our rural and national communities”.

Joe Manning, commercial director with Tesco Ireland, said that the deal gives certainty to the retailer’s partners.

“We are committed to providing our customers with outstanding quality, choice, and availability of fresh and packaged products. Fortunately, the Irish agri-food sector is similarly focused on delivering for our customers, which is why we are investing this €200 million in new and expanded agreements,” Manning added.

Aurivo general manager Stephen Blewitt commented: “With this new multi-year commitment, we are further strengthening our longstanding partnership with Tesco. Over 1,000 farming families will benefit from this supply deal, and the fact that Tesco can offer longer-term contracts offers great security to our partners and farmers.”