As part of its support for Irish suppliers and agribusiness, the northwest-based dairy co-op, Aurivo, has signed a €36 million multi-year agreement 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 100% Irish sourced fresh milk, daily, to service the contract.
Speaking about the announcement, the Minister for Agriculture, Food and the Marine, Charlie McConalogue TD, welcomed Tesco’s €200 million investment in Irish suppliers: “This €200m investment announced by Tesco Ireland in Donegal represents a vote of confidence in the Irish agrifood sector, underlining 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, Tesco Ireland, who joined Minister McConalogue in Donegal for the announcement said: “We are giving multi-year certainty to our partners, so they can further develop and grow with confidence, having already enjoyed long relationships with Tesco over many years. We are committed to providing our customers with outstanding quality, choice, and availability of fresh and packaged products. Fortunately, the Irish agrifood sector is similarly focused on delivering for our customers, which is why we are investing this €200 million in new and expanded agreements with several Irish agrifood suppliers.”
Aurivo, which includes the Connacht Gold, Donegal Creameries, and Arrabawn brands, employs 700 people throughout the west of Ireland, and exports to almost 50 countries.
At the announcement, Stephen Blewitt, General Manager, Dairy, Aurivo said: “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, farmers”.
When exploring partnerships with new and existing Irish suppliers, sustainability is increasingly another a key consideration for Tesco Ireland.
“Aurivo is a great example of a supplier that has partnered with us to apply a more sustainable lens to their products. In recent months, we have been working with them to replace the plastic sleeves on milk containers, with a smaller label, reducing plastic, which makes them easier to recycle for customers”, Joe Manning added.
Tesco buys €1.6 billion of Irish food and drink annually, more than the value of Irish food and drink exported to any country in the European Union. This makes Tesco is the single largest retail purchaser of Irish food and drink in the world, buying €1.6 billion a year, as verified by Indecon Economic Consultants.
