Dairy co-op cuts energy costs with €2m supply deal

Arrabawn Group will pay wholesale market prices for natural gas, having signed a €2m gas supply deal with Vayu Energy.

The Tipperary dairy and animal feed co-op says this cost-efficient gas deal will meet full the year-round energy requirements for its dairy ingredients manufacturing facility in Nenagh.

Arrabawn Group’s financial controller, Micheal O’Kelly, said: “Our partnership with Vayu Energy will enable us to significantly reduce our operating costs by shifting to natural gas as our main fuel source.

“It comes at an exciting time for our business on foot of our recent completion of a €15.7m capital investment programme, which has allowed us to achieve substantial gains in efficiencies and a significant increase in our competitiveness.”

In 2015, Arrabawn reached its highest ever volume of milk supplies at 355 million litres. The company operates three divisions, namely dairies, dairy ingredients and agribusiness.


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