Dairy ingredients expansion: Ireland’s Aurivo reveals US$55 million investment
21 Aug 2018 --- Aurivo, the globally focused agribusiness headquartered in the north-west of Ireland, has announced a €48m investment plan for the business for the next five years. The expansion program, which comes as a key component of its Engage 2022 strategic growth plan, incorporates a range of projects across its dairy ingredients, consumer foods and agribusinesses and will grow employment across the Co-Operative between now and the end of 2022. The investment has been supported by the Department of Business, Enterprise and Innovation through Enterprise Ireland.
Key to delivering Aurivo’s expansion program is an extensive upgrade of its Dairy Ingredients facility in Ballaghaderreen which is underway and encompasses the creation of a modern state-of-the-art production facility that enables innovative new product development and further positions Aurivo to meet global demand and anticipated market growth.
Investment thus far has supported Aurivo to increase milk supply by 8 percent in 2017. A €26m investment in the installation of a new dryer for the site will commence next month and is critical to the business achieving its ambitious growth plans. Once completed, capacity at Aurivo’s Dairy Ingredients facility will increase by 50 percent and will produce over 50,000 tons of milk powders and 15,000 tons of butter annually on the site.
The investment program underway focuses on all areas of Aurivo’s business and includes new Homeland retail store openings in the north-west and safety and efficiency related matters across its Livestock Marts business. It also incorporates an expansion to Aurivo’s feed manufacturing site in Ballaghaderreen, Co. Roscommon.
Aurivo’s Agribusiness, which manufactures the NUTRIAS brand of animal feed, has experienced several consecutive years of sustained double-digit growth and the expansion and additional capacity at the feed mill, which will meet customer requirements in relation to volume and product choice, is also expected to generate demand for additional skilled workers in manufacturing and ancillary services.
Commenting, Pat Duffy, Chairman of Aurivo notes: “All our investment decisions and developments at the Co-Operative are designed to ensure that Aurivo is well positioned to take advantage of all future market opportunities for our milk producers. Our focus as a business is all about growth and how we can effectively continue to be one of the strongest member-owned organizations in the country.”
Aaron Forde, CEO of Aurivo says: “Our strategic focus and the supporting investment program aims to ensure that Aurivo will continue to grow the business over the coming five years and in doing so we will effectively leverage international market growth potential for the business. With our enhanced facilities, Aurivo will compete strongly in serving our existing customers and will also enable us to access new international markets. This is all about working to achieve our vision to outperform our peers by becoming leaders in our chosen markets, regionally nationally and internationally.”
“One of our key strategic targets is to grow by 25 percent from a 400 million liter milk business to a 500 million one, by 2022. That is well within our grasp and our organic growth plans for the business.”
“Aurivo operates from a strong financial platform. So, aligned to our organic growth plans which this investment program focuses on, we will continue to look at suitable acquisitions and business partnerships that have the potential to deliver value to the business on behalf of its members.”
