A year of achievement for Aurivo Co-Op - 2018

IN A year marked by ongoing volatility in global dairy markets, which in turn impacted farmers right across the country, 2018 was a year of overall achievement and progress for Aurivo - the globally-focused Agribusiness, headquartered in the North West of Ireland.

Commenting, Aaron Forde, CEO of Aurivo said: “By and large 2018 was a challenging year for the Irish dairy sector - from volatile global markets to adverse weather conditions in Ireland. Against that backdrop however, with an eye to the future, Aurivo strove hard to ensure that it was a year of achievement for the Co- Op. As an innovative multi-purpose Co- Operative, we have a strong ambition to continue to grow a sustainable business that will not only create value for our members but ensure a certain future for our farms, our processes and our communities for generations to come. We look forward to an even more positive year ahead as we continue to expand our business and effectively continue to be one of the strongest member-owned organisations in the country.” KEY ACHIEVEMENTS IN 2018:

Strategy and investment

Aurivo’s focus and achievements in 2018 were grounded by the Co- Op’s Engage 2022 strategic growth plan, which in turn is underpinned by the Group’s €48 million five-year capital investment programme that was announced in 2018. The ongoing investment programme, designed to enable innovative new product development and to further position the business to meet global demand and anticipated market growth in the years ahead, incorporates a range of projects across the Co- Op including the extensive €26m upgrade of the Dairy Ingredients facility in Ballaghaderreen Co. Roscommon. Leadership

Working to deliver on the goals of Engage 2022, Aurivo saw changes to its leadership on its Executive Team with the senior appointments of Sheila Maloney to General Manager of Aurivo’s Agribusiness and Marilyn Phillips to Group Head of HR. Stephen Blewitt in turn was appointed to lead Aurivo’s Dairy Ingredients and Consumer Foods business.

Supporting farmers

To assist our suppliers with the challenges they were facing in 2018, Aurivo launched the innovative MilkFlex Loan Scheme which offered dairy farmers, flexible, competitively-priced financing.

With price volatility being a feature of 2017 also, it was gratifying to see that within the KPMG / Irish Farmers Journal Annual Milk Price Review announced last July that Aurivo has lead its neighbouring Co- Ops for four of the past five years on milk price. Product development

A good example of Aurivo’s ongoing produce development and innovation was the launch in September of Connacht Gold MÓR Milk, a fresh and nutrient-rich whole milk specifically formulated for children from 1-12 years.

Recognition

Aurivo’s achievements were recognised by a range of awards in 2018:

- Aurivo Consumer Foods was named Best Dairy Supplier at the Checkout ‘Best in Fresh’ awards, before scooping the prize for Best Chill & Fresh Supplier at the Barry Group Awards in September.

- In early October, there were four wins at the Blas na hÉireann awards. Aurivo’s Connacht Gold Creamery Butter was awarded silver in the Dairy category, while its Connacht Gold Softer Butter took bronze in the same grouping. In the Flavoured Milk category, the Co-op won silver for Dunnes Stores Chocolate Flavoured Milk and bronze for Dunnes Stores Strawberry Flavoured Milk. Dunnes Stores uses milk supplied by Aurivo to develop its own brand products.

- The Mums and Tots Awards, also in October, saw Connacht Gold MÓR Milk being named Best Follow on Milk.

- Aurivo Consumer Foods was also named Supplier of the Year at the Tesco Fresh Supplier Awards.

Corporate responsibility

Aurivo’s Charity of the Year programme is an important part of its Corporate Social Responsibility and Origin Green sustainability strategy. During 2018 Aurivo employees fundraised for Down Syndrome Ireland’s local branches across the North West region as part of the Co- Op’s Charity of the Year programme.

For the second year Aurivo coordinated the Gaffney and Mulleady Agriculture, Food and Nutrition Scholarship which was established in memory of Paddy Gaffney and Sean Mulleady who died tragically in 2013.

Commenting on 2018, Pat Duffy, Chairman of Aurivo said: “This is a confident business delivering for its members, and it is within that context that we highlight some of our key achievements in 2018. Aurivo has a long track record of achievement, much of this pointed out in the recent publication of ‘Fields of Gold’ – one of the most comprehensive studies ever undertaken of farming west of the Shannon. While we are proud of our history and track record, our focus is firmly on the future as we strive to continuously achieve and deliver for our members, our farmers, our employees and the communities we operate in.”

Aurivo’s financial and operational performance for 2018 will be announced in April.