Kilkenny man, Niall Kiely of ArgosMilk
Agros, the agri-payment software company based in Kilkenny and Cork, has signed a multi-million euro deal with Arla Foods for the role out of the Agros system across seven countries in Europe.
Once complete, the Agros system will be used to pay over 25,000 farmers in seven countries (Denmark, Sweden, Germany, Belgium, Holland, Luxembourg, United Kingdom)
"Paying farmers accurately for their milk product is one of the most important things that a co-op could do. Consolidation in the global milk market and competition between co-ops to provide the best possible service and solution for their members means coops have to excel in how they deliver for their members while also keeping overheads under control," Niall Kiely of Argos said.
"Failure by co-ops to deliver world class services to farmers opens the door for members to move to other co-ops and introduces the risk of losing market share and the competitive advantage that this brings," he added.
Being a global organisation Arla Foods required a solution that could be delivered quickly and met all of the security, statutory and local requirements.
Agros already provides milk payment systems which process payments for 100% of the UK markets and a large percentage in Ireland. Towards the end of 2017 Arla Foods conducted a competitive tendering process which aimed to select a single vendor who could handle milk payments across seven jurisdictions. The process which was run from the Arla Foods corporate HQ in Aarhus in Denmark focused on selecting the best fit system. Competition for the contract came from other global companies.