Aurivo reports 'solid and robust for results in a volatile and challenging year'
A surge in UK milk prices this year may be an early indication British buyers are actively sourcing within their home market to limit the fallout from a hard Brexit, according to the head of Aurivo, one of the biggest food producers in the west of Ireland.
Aurivo CEO Aaron Forde said the dairy itself sells “next to nothing” into the UK, but it is exposed to risks if a hard Brexit makes it more difficult and costly to process milk from its suppliers in Northern Ireland.
The group’s UK-based sports nutrition business For Goodness Shakes is also potentially exposed if Brexit triggers a UK consumer downturn, he said.
He described Aurivo results yesterday as “solid and robust for ourselves in a volatile and challenging year” for the sector.
The co-operatively owned agri-foods business is best known for brands
including Connacht Gold and Donegal Creameries.
Those results showed profits at Aurivo down 23pc to €3m, as sales rose 4pc to €443.8m.
Mr Forde said volatile weather last spring and summer had affected profits, including the impact of efforts to support milk prices to suppliers. Last year’s heavy spring snow also led to the close of the marts business last year for a week – hitting turnover.
Weather-related costs are an increasing issue, Mr Forde said.