Fears jobs could be lost at Arrabawn's Galway facility

IFA: 'A serious indictment of the liquid milk sector to see Arrabawn exiting the business.'

There are fears for the future of more than 50 jobs at Arrabawn Dairies' milk processing plant at Kilconnell, Co Galway.

The Board of Directors at Arrabawn has decided to accept an offer from Aurivo to purchase its liquid milk sales book. However, the site in Kilconnell is not included in the sale and Arrabawn said it is looking at options for alternative use. 

The co-op employs 110 people in this area of its business with half of these, mostly sales employees will transfer with the business. The deal is subject to due diligence and approval from the Competition Authority. 

In a statement, Arrabawn said that processing at the plant will continue until summer 2023. Milk supply and upcoming liquid milk contracts will not be impacted by this decision.

"Arrabawn’s priority is to support all employees and suppliers during the transition. A consultation process is underway with staff to ensure all necessary supports are being provided during the transition," the company said.

Keith O'Boyle, the Irish Farmers' Association's Liquid Milk Chair, said it’s a serious indictment of the liquid milk sector to see Arrabawn exiting the business.

“We cannot have a situation where any other processor or farmer feels forced to leave the liquid milk sector. The only way to guarantee this is by retailers paying a fair price for fresh milk. If this doesn’t transpire, a regular supply of fresh milk on supermarket shelves is in real jeopardy.”