Aurivo Dairy Ingredients reported a “strong and resilient” performance in 2022 in tandem with a record average milk price paid to suppliers across the year.
That is according to its full-year financial results for the year ended December 31st, 2022, which the globally focused agri-business, headquartered in the north-west of Ireland, released today (Wednesday, May 3rd, 2023).
According to the co-op, which has businesses in consumer foods, dairy ingredients, retail stores, animal feeds and livestock trade, it paid an average milk price of 61.4 cpl in 2022, compared to 40.7 cpl in 2021.
Dairy Ingredients’ revenues rose by 44.6% to €340.4m (FY21: €235.5m).
Aurivo’s dairy business experienced a “very strong” year, with record milk volumes being processed over the year.
The business unit continued to execute its strategic goal of broadening its reach globally, and to that end, significant progress was made in 2022 on growing sales in Central America, the Middle East and Southeast Asia.
The process to extend Aurivo’s product range continued with success in innovation with the introduction of lower protein, higher returning product ranges.
The preparation for the production and sales of high-value skim milk powder is “well underway” and is envisaged for the third quarter of this year.
The flexibility to evolve into other product categories alongside enriched milk powder gives Aurivo’s Dairy business additional options and flexibility on the basis of customer demand and market sentiment, the release outlines.
Last year saw 29 new entrants to dairying across seven counties, and the business anticipates that a further 22 new entrants will join in 2023.
Its Farm Profitability Programme “continues to fulfil its” strategic goals, assisting suppliers with on-farm improvements, such as improving average butterfat levels by 7% in 2022 over 2021 and an additional 6% of herds availing of Aurivo’s subvention on milk recording in 2022.
Its farm profitability team will also continue to assist its network of milk suppliers in navigating the “ever-changing” environmental challenges facing dairy farmers.
The quality of its dairy farmers’ produce and the high standards of dairy farming in the Aurivo region was celebrated nationally during the year.
The Connnelly family farm based in Tuam, County Galway, won the NDC & Kerrygold Quality Milk Awards, which marked the second time in three years that an Aurivo supplier has won this prestigious award.
Also, supplier, Christopher Tuffy from Sligo, was named as the 2022 FBD Young Farmer of the Year.
Aurivo’s dairy ingredients site at Ballaghaderreen, Roscommon, is a very large user of thermal energy, and the current situation in Ukraine has had an impact, the release added.
It is fortunate, however, that 35% of energy needs at the site comes from the woodchip/biomass boiler installed in 2014, and pricing on this raw material has not been impacted to the same extent by global events.
In 2022, due to the escalating cost and growing doubts about energy availability, the business facilitated two additional thermal energy sources, namely liquefied petroleum gas and diesel, to add to the pre-existing three sources (liquified natural gas, heavy fuel oil and biomass).
“This will give us greater flexibility/availability and the ability to select the most competitively priced energy source at any given time,” the spokesperson explained.
“The installation of a €15.5m evaporator project is going to schedule and is currently being commissioned for peak milk supply season.”
“The site in Ballaghaderreen is also undertaking upgrades and improvements to its effluent wastewater treatment system,” the spokesperson concluded.