Aurvio and Dale Farm have announced a strategic partnership.
This follows detailed discussions over recent months with both co-operatives deciding that now is not the right time to proceed with a merger process.
Aurivo specialises in the production of liquid milk, powders and butter and has a state-of-the-art production factory in Ballaghaderreen.
It also has Homeland stores in Ballaghaderreen, Boyle, Athleague, Castlerea, Mohill, Longford, and Kiltoghert outside Carrick-on-Shannon.
Connacht IFA Chairperson Brendan Golden believes it will benefit farmers across the country: