€48 Million Investment Programme at Aurivo
As a key component of its Engage 2022 strategic growth plan, Aurivo, the agri business headquartered in the north-west of Ireland, has announced a €48 million investment plan for the next five years. The expansion programme incorporates a range of projects across its dairy ingredients, consumer foods and agri businesses 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 programme is an extensive upgrade of its Dairy Ingredients facility in Ballaghaderreen in County Roscommon 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% in 2017. A €26 million investment in the installation of a new dryer for the site is critical to the business achieving its ambitious growth plans. Once completed, capacity at Aurivo’s Dairy Ingredients facility will increase by 50% and will produce over 50,000 tonnes of milk powders and 15,000 tonnes of butter annually on the site.
The investment programme 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.
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.
Pat Duffy, chairman of Aurivo, comments: “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 organisations in the country.”
Aaron Forde, chief executive of Aurivo, says: “Our strategic focus and the supporting investment programme 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% from a 400 million litre 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 programme 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.”
For the financial year ended 31 December 2017, Aurivo reported a group operating profit (before exceptional items) of €3.90 milliion, an increase of 10% on the result for 2016. Turnover for the year was €426.4 million, an increase of 9% on the previous year. Aurivo continued its capital programme in 2017, investing a further €4 million in the business bringing total investment to €28.7 million over the past seven years.
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Pictured (left to right): Aaron Forde, chief executive of Aurivo; Pat Duffy, chairman of Aurivo; and Donal Tierney, chief financial officer of Aurivo.
