Arrabawn’s Board of Directors has confirmed that it has decided to accept an offer from Aurivo to purchase Arrabawn’s liquid milk sales book.
rrabawn has also clarified that the Kilconnell site is not included in the sale as the fabricator is evaluating options for an alternative use and that all sales staff are to move with the company.
The transaction is subject to due diligence and competition authority approval and processing is expected to continue at the facility through summer 2023.
Arrabawn said in a statement that their “priority is to support all employees and suppliers during the transition” and that “milk supplies and forthcoming liquid milk contracts will not be affected by this decision.”
Reacting to the news, Roscommon-Galway TD Denis Naughten described the board’s decision as a major blow to East Galway.
“Significant investment has been made in recent years in the facility which will handle liquid milk operations for Arrabawn Dairies who supply many retailers across the country with their own branded milk and the loss of this competitor will also have an impact on consumer milk prices longer term” said Mr Naughten.
“Following a meeting with local councilors Tim Broderick and Evelyn Parsons yesterday about the threat to the Kilconnell plant, I have sought to meet Minister Charlie McConalogue and we now hope to explore all possible options to improve processing capacity and employment obtainable in the village of Kilconnell.”
Roscommon-Galway TD Michael Fitzmaurice said Arrabawn has a moral obligation to the people of Kilconnell and surrounding areas to support job replacement efforts.
“The sale of Arrabawn’s liquid milk book to Aurivo will no doubt come as a shock to dairy farmers who have invested in their businesses to ensure the Kilconnell facility has an adequate supply of milk year-round,” said Mr Fitzmaurice.
“Efforts must be redoubled by the government and all agencies to realize the full potential of each and every asset, both government and privately owned, in the region.
“There is no magic wand when it comes to creating jobs in rural Ireland but with hard work and genuine commitment from Government there are opportunities that can and must be seized,” said the Roscommon-Galway TD.
https://www.independent.ie/business/farming/agri-business/aurivo-in-deal-with-arrabawn-to-purchase-liquid-milk-sales-41940525.html Aurivo agrees with Arrabawn to purchase liquid milk sales