Lakeland Dairies opens €40 million expansion of milk powder operations

Lakeland Dairies opens €40 million expansion of milk powder operations

(L-R) Lakeland Dairies’ Chairman Alo Duffy; Heather Humphreys TD, Minister for Culture, Heritage and the Gaeltacht; Michael Hanley Group CEO Lakeland Dairies and Agriculture Minister Michael Creed TD.

The Bailieboro facility is among the most advanced milk powder plants in the world and one of the largest such plants in Europe.

The Minister for Culture, Heritage and the Gaeltacht, Heather Humphreys TD also attended, together with Alo Duffy, Chairman of Lakeland Dairies, the Board and regional committees of the co-operative and Group Chief Executive, Michael Hanley. The event forms part of a series of open days where hundreds of Lakeland Dairies milk supplying farmers, and their families, are also visiting the new facility.

The investment has been supported by the Department of Business, Enterprise and Innovation through Enterprise Ireland. This is creating 85 new jobs across the Lakeland Dairies Group between now and 2019. Over 180 construction workers were employed by contractors during the building, installation and commissioning phases for the new facilities.  With 2,400 dairy farmers supplying milk to the co-operative across 15 counties north and south, Lakeland Dairies now employs over 800 people.

One of Ireland’s leading farmer owned dairy processing co-operatives, Lakeland Dairies processes over 1.2 Billion litres of farm produced milk annually into 240 value-added dairy foodservice products and food ingredients for export to over 80 countries worldwide.

This is Lakeland Dairies’ third milk drying plant at its Bailieboro processing centre. It will now produce over 160,000 tonnes of milk powders and 50,000 tonnes of butter annually on the same site, which allows great flexibility in milk throughput and overall economies of scale for the food ingredients business.

The development is designed to ensure that the co-operative is well positioned to take advantage of all future market opportunities for its milk producers. The expansion saw the installation of a new 7 tonne per hour milk dryer and evaporators where total milk powder production capacity has now increased to 20 tonnes per hour. The plant has the highest levels of efficiency including heat recovery systems and its energy centre can also supply electricity back into to the national grid.

Agriculture , Food and Marine Minister Michael Creed said:

“International markets hold big growth potential for Ireland as a global exporter of high quality dairy food ingredients. With this impressive new facility, Lakeland Dairies will compete strongly in serving its existing long standing customers and will also access new markets. The new plant is a model of innovation and efficiency and is exemplary of the very high standards of food quality and production which our dairy industry is projecting across the world.”

Minister for Culture, Heritage and The Gaeltacht, Heather Humphreys TD said: 

"This technologically advanced new plant is a jewel in the crown of Ireland’s dairy industry. The integration of facilities that Lakeland Dairies has achieved on a single site is very impressive and an excellent achievement of engineering. It is also notable that this is a co-operative enterprise where the collective endeavours of dairy farmers are creating competitive progress for the good of dairy farming, processing and exporting from the northern region and nationally from Ireland.”

Lakeland Dairies’ Chairman, Alo Duffy said,

“With this new facility Lakeland Dairies will compete at the forefront of the global dairy food ingredients industry. This development will underpin our further progress in a rapidly changing world of international trade where we have a heritage of over 120 years in dairy farming and an unstinting commitment to making the most excellent dairy products for all of our customers.”

Lakeland Dairies’ Group CEO Michael Hanley said,

“Our strategy is to create long term competitiveness and sustainability for our milk producers and to meet the long term needs of our valued customers in the global food industry where we see constant demand for our products.  We have created a culture of innovation and excellence across our entire organisation which will continue to drive the business forward. In particular, we are addressing opportunities in the areas of infant formulas, dairy proteins, food manufacturing and health related nutritional products, among other categories, where we are already a globally recognised leading supplier of powders."

Orla Battersby, Head of the Food Division, Enterprise Ireland said;

“Enterprise Ireland is delighted to support the development and expansion of the Lakeland Dairies Milk Powder Plant which will directly support innovation across the food and dairy sector and ultimately contribute to export growth. The development and expansion of the Lakeland plant is another important milestone in the growth of the Irish food industry, which is Ireland’s largest indigenous manufacturing sector. The opening of this new showcase plant reflects highly on the entire Irish dairy sector - pooling together innovation with best in class facilities which further leverages our strong international reputation in the sector.”

Lakeland Dairies’ Chairman Alo Duffy; Agriculture Minister Michael Creed TD; Michael Hanley Group CEO Lakeland Dairies and Heather Humphreys TD, Minister for Culture, Heritage and the Gaeltacht.

(L-R) Michael Hanley Group CEO Lakeland Dairies; Orla Battersby, Head of the Food Division, Enterprise Ireland; Michael Creed TD, Minister for Agriculture, Food and the Marine; Heather Humphreys TD, Minister for Culture, Heritage and the Gaeltacht and Alo Duffy, Chairman, Lakeland Dairies.

Tyrone Dairy Farmer wins Lakeland Dairies Supreme Milk Quality Award

Tyrone Dairy Farmer wins Lakeland Dairies Supreme Milk Quality Award

At the Lakeland Dairies Milk Quality Awards, dairy farmers from both sides of the border won top honours for the exceptionally high quality of milk produced on their farms.  The awards publicly recognise the achievements of Lakeland Dairies milk suppliers who are committed to efficiency and quality in all aspects of their milk production. 

Winning a milk quality award is an exceptional achievement.  The winners emerged from among over 2,000 milk producers supplying a total milk pool of 1.2 Bn litres.

The awards were presented by the Minister for Agriculture, Food and the Marine, Michael Creed T.D., together with Lakeland Dairies Chairman Alo Duffy and Chief Executive, Michael Hanley.

Seamus & Gerard Quinn, Ardboe, Co. Tyrone  won the Lakeland Dairies Supreme Milk Quality Award and also won the overall Northern Ireland Milk Quality Award.

  • Francis Goodman, Carrickmacross, Co. Monaghan, won the 500,000+ litres milk production category.  The runner-up in this category was Nigel Trenier, Belturbet, Co. Cavan.
  • Terence McGovern, Ballyconnell, Co. Cavan, won the 0 – 500,000 litres milk production category, closely followed by runner-up Adrian Kelly, Cloghan, Co. Offaly.
  • In the category for New Entrants to Dairy Farming, G.D. Young from Mullingar, Co. Westmeath,  and Raymond, James and Graham Harrison, Hillsborough, Co. Down both won awards for exceptional milk quality.
  • The overall Northern Ireland Runners-Up were Keith & Robin Crawford, Cookstown, Co. Tyrone
  • Joseph & Paul Molloy, Lea more, Tullamore, Co. Offaly, won the inaugural Lakeland Dairies Sustainability Award for outstanding commitment to sustainable milk production, based on measures including carbon footprint, biodiversity, water management and milk quality results.

Congratulating the winners, Minister Creed said:

“The Lakeland Dairies milk quality awards encourage excellence in dairy farming. The high quality of our dairy products is one of the Irish food industry’s key selling points. Excellence in dairy farming is difficult to achieve and to sustain on an ongoing basis. It requires huge commitment and it places significant demands on dairy producers. The cornerstone for our success on world markets has been and will continue to be the high quality milk which underpins our processing industry. I congratulate all the winners and I wish Lakeland Dairies and all of its members continuing success in the future”

Lakeland Dairies Chairman Alo Duffy said: 

“The global demand for food will continue to increase over the next thirty years. Having access to natural and wholesome dairy products, made using sustainable methods, will become increasingly important  in the future and Ireland is very well placed to meet this increasing global demand. Ireland’s green image, our environment and our pasture based production model are exceptionally important and it is most certainly a priority for Lakeland Dairies.  As a dairy processor we need to be able to provide a continuous level of reassurance to our customers about our products.  We simply couldn’t do that without the commitment of all our producers whose dedication and achievements are strongly exemplified by the winners of our milk quality awards.”

Lakeland Chief Executive Michael Hanley said:

“Agriculture and dairying will be key engines of economic progress both regionally and on an all-island basis as we continue to grow our food exports in the future.  Lakeland Dairies is committed to the achievement of dairy industry scale, efficiency and competitiveness, for the long term benefit of producers and rural communities.

With the strategic investments we have made, we are able to process as much milk as our suppliers can provide. We have a strong presence in international markets, exporting nearly 100% of our output, and we have built a name for quality and reliability on a worldwide basis. The winners here today understand that requirement.  We could not be successful without the total quality commitment of all our producers.   These awards are a tribute to excellence in farming, and they are exemplary of the very high quality milk suppliers who we are fortunate to have in Lakeland Dairies.”

Winners:

SUPREME MILK QUALITY WINNERS - Seamus & Gerard Quinn, Ardboe, Co. Tyrone won the Lakeland Dairies Supreme Milk Quality Award and also won the overall Northern Ireland Milk Quality Award. Dairy farmers from both sides of the border won top honours for the exceptionally high quality of milk produced on their farms.  The overall winners were selected from over 2,000 dairy farmers supplying milk to Lakeland Dairies. The awards publicly recognise the achievements of Lakeland Dairies milk suppliers who are committed to efficiency and quality in all aspects of their milk production.   They were presented by Irish Agriculture Minister Michael Creed. Pictured (l – r) are: David Gunn, Easyfix; Michael Hanley, Group CEO, Lakeland Dairies; Seamus Quinn; Minister Creed; Margaret Quinn, Colin Kelso, Vice-Chairman and Alo Duffy, Chairman of Lakeland Dairies.

HIGH QUALITY DAIRY FARMERS - Keith and Robin Crawford, Cookstown, Co. Tyrone were the overall Northern Ireland Runners-Up in the Lakeland Dairies Milk Quality Awards. The awards publicly recognise the achievements of Lakeland Dairies milk suppliers who are committed to efficiency and quality in all aspects of their milk production.   The overall winners were selected from over 2,000 dairy farmers supplying milk to Lakeland Dairies. They were presented by Irish Agriculture Minister Michael Creed. Pictured (l – r) are: Michael Hanley, Group CEO, Lakeland Dairies; Linda and Keith Crawford with son Timothy; Minister Creed; Robin and Doreen Crawford with Colin Kelso, Vice-Chairman and Alo Duffy, Chairman of Lakeland Dairies.

BEST NEW ENTRANTS TO DAIRYING –  In the Lakeland Dairies Milk Quality Awards, Raymond, James and Graham Harrison, Hillsborough, Co. Down won the Best New Entrant Award for the exceptionally high quality of milk produced on their farm. The awards publicly recognise the achievements of Lakeland Dairies milk suppliers who are committed to efficiency and quality in all aspects of their milk production.   The overall winners were selected from over 2,000 dairy farmers supplying milk to Lakeland Dairies. They were presented by Irish Agriculture Minister Michael Creed. Pictured (l – r) are: Michael Hanley, Group CEO, Lakeland Dairies; Raymond and James Harrison; Minister Creed; Graham Harrison, Colin Kelso, Vice-Chairman and Alo Duffy, Chairman of Lakeland Dairies.

HIGHEST QUALITY MILK PRODUCERS:  Francis Goodman, Carrickmacross, Co. Monaghan, won the 500,000+ litres milk production category of the Lakeland Dairies Milk Quality Awards.  The awards were presented by Agriculture, Food and Marine Minister Michael Creed T.D. Pictured (l – r) are: Michael Hanley, Group CEO, Lakeland Dairies; Francis Goodman, Minister Creed; Alice Goodman and Alo Duffy, Chairman of Lakeland Dairies.

HIGHEST QUALITY MILK PRODUCERS:  Nigel Trenier, Belturbet, Co. Cavan, was the overall runner-up in the 500,000+ litres milk production category of the Lakeland Dairies Milk Quality Awards. The awards were presented by Agriculture, Food and Marine Minister Michael Creed T.D. Pictured (l – r) are: Michael Hanley, Group CEO, Lakeland Dairies; Mark Trenier who received the award on behalf of Nigel Trenier; Minister Creed; Beryl Trenier, Colin Kelso, Vice-Chairman and Alo Duffy, Chairman of Lakeland Dairies.

HIGHEST QUALITY MILK PRODUCERS:  Terence McGovern, Ballyconnell, Co. Cavan, won the 0 – 500,000 litres milk production category of the Lakeland Dairies Milk Quality Awards. The awards were presented by Agriculture, Food and Marine Minister Michael Creed T.D. Pictured (l – r) are: Michael Hanley, Group CEO, Lakeland Dairies; Terence McGovern; Minister Creed; Colette McGovern and Alo Duffy, Chairman of Lakeland Dairies.

HIGHEST QUALITY MILK PRODUCERS:  Adrian Kelly, Cloghan, Co. Offaly, was the overall runner-up in the 0 – 500,000 litres milk production category of the Lakeland Dairies Milk Quality Awards. The awards were presented by Agriculture, Food and Marine Minister Michael Creed T.D. Pictured (l – r) are: Michael Hanley, Group CEO, Lakeland Dairies; Adrian Kelly;  Minister Creed; Linda Kelly and Alo Duffy, Chairman of Lakeland Dairies.

​​HIGHEST QUALITY MILK PRODUCERS: G.D. Young from Mullingar, Co. Westmeath, won the Best New Entrant category of the Lakeland Dairies Milk Quality Awads for the exceptionally high quality of milk produced on his farm.  The awards were presented by Agriculture, Food and Marine Minister Michael Creed T.D. Pictured (l – r) are: Michael Hanley, Group CEO, Lakeland Dairies;  G.D. Young; Minister Creed; Caroline Young and Alo Duffy, Chairman of Lakeland Dairies.

HIGHEST QUALITY MILK PRODUCERS: Joseph & Paul Molloy, Leamore, Tullamore, Co. Offaly, won the inaugural Lakeland Dairies Sustainability Award for outstanding commitment to sustainable milk production, based on measures including carbon footprint, biodiversity, water management and milk quality results, at the Lakeland Dairies Milk Quality Awards. The awards were presented by Agriculture, Food and Marine Minister Michael Creed T.D. Pictured (l – r) are: Michael Hanley, Group CEO, Lakeland Dairies; Joseph Molloy;  Minister Creed and Alo Duffy, Chairman of Lakeland Dairies.

 

Lakeland Dairies reports 2016 Results

Lakeland Dairies reports 2016 Results

Lakeland Dairies has reported financial results for the year ended 31st December 2016.

Lakeland Dairies operates across 15 counties on a cross border basis, processing milk into a wide range of value-added dairy foodservice products and food ingredients. The co-operative has a portfolio of 240 different dairy products which it exports to 80 countries worldwide.

In spite of difficult dairy market conditions, Lakeland Dairies turned in a very robust performance with revenues up by 2% to €601m, yielding an operating profit of €7.2m before exceptional costs, and EBITDA of €18.9m. Lakeland Dairies closed the year with a strong balance sheet and shareholder’s funds of €102m.

As a farmer owned co-operative, Lakeland Dairies strongly supported the milk price that it pays to dairy farmers throughout the year, while ensuring an appropriate level of re-investment to drive the future long term growth and development of the business. All developments have been achieved without any requirement for levies or sharing up by milk producers.

Lakeland Dairies acquired Fane Valley Dairies in May 2016, increasing milk intake by 22% to 1.1bn litres. The continuing benefit of this additional milk flow, together with generally increasing milk supplies, will take full effect in the current year as intake rises to 1.2bn litres of milk - contributing to economies of scale.

Commentary - By Division

FOOD INGREDIENTS €353.6M - The Food Ingredients Division performed strongly in a challenging year with revenues increasing by 9% to €353.6m. The acquisition of Fane Valley Dairies contributed substantial extra milk volumes for processing, helping to meet consistent demand for a wide range of dairy food ingredients.  Bailieboro Dryer No. 3 (Milk Powder Plant) was completed and commissioned in time for the peak milk production season, including new robotic systems, along with an overall efficiency upgrade across the entire processing footprint. Lakeland Dairies continued to build on its strengths as a major provider of ingredients to the infant formula and nutritionals markets. It is now able to produce over 160,000 tonnes of milk powders a year and over 50,000 tonnes of butter on a single site.

FOODSERVICE €194.1M - Foodservice Revenues of €194.1m include a reduction of 3.8% from the previous year which is primarily due to pricing sensitivity in an intensely competitive market climate. The overall volume of sales remained positive where Lakeland has a diversified and innovative product mix, adding further value to every litre of milk processed.  The co-operative’s major new Global Logistics Centre in Newtownards played an important role meeting customer demand in key market segments including hospitality, catering and convenience, using highly automated systems with maximum effectiveness and efficiency.

AGRIBUSINESS €53.3M - Agribusiness revenues reduced by 14% to €53.3m for the year. The reduction in revenue relates to a combination of lower sales volumes due to the overall difficulties experienced by dairy farmers during the year, plus feed and fertiliser price reductions to ensure that Lakeland supported our customers as much as possible.  Lakeland manufactured over 160,000 tonnes of high performance animal feeds and sold 20,000 tonnes of fertilisers, supported by the co-operative’s expert Rumismart technical team and excellent customer service.

Michael Hanley, Group Chief Executive, said:

In a challenging and sometimes unpredictable dairy market environment, Lakeland Dairies continued to make very positive progress in 2016. Our developments have further advanced our competitiveness and processing scale. We are especially pleased that, in spite of difficult market conditions, we sold all of our output to really well established customers where we have consistently increasing levels of demand. 

After going through a sustained period where international dairy markets have been very volatile, the market has become somewhat stronger, however its continuing strength cannot be predicted. Our aim is to be the most efficient and most competitive dairy processor in line with the highest, world class standards of operation, and we are well advanced along that pathway. 

We want our milk producers to see the best possible and most sustainable returns from their dairying. With the strategic investments we have made, we are able to process as much milk as our suppliers can provide. We are now processing milk into 240 different products which gives us great flexibility in our approach to meeting market needs.  We have a strong presence in international markets, exporting nearly 100% of our output, and have built a name for quality and reliability across over 80 countries worldwide. That can justifiably provide our milk producers with a high level of confidence in their long term future and success.

Alo Duffy , Chairman of Lakeland Dairies said:

To prosper, we need a business with large scale processing capacity, lowest cost manufacturing and the best routes to market for our dairy products. Lakeland now has all of that. It is a lean, stable, growing and well organised processor, and a leading supplier of some of the best dairy products that customers can buy anywhere across the globe today. To get to this stage has needed careful planning, investment, new product innovations and growth through acquisitions which have been integrated successfully. Lakeland Dairies will continue to grow and to stand out as a leading dairy provider on world markets.

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Research Development & Innovation Manager - Food Ingredients Division

Research Development & Innovation Manager - Food Ingredients Division

Lakeland Dairies is seeking to recruit a Research Development & Innovation Manager - Food Ingredients Division.

Lakeland Dairies have invested in many new technologies over the years which are inherently important to differentiate our ingredients which deliver the nutritional, functionality and cost-effective solutions worldwide to our customers. To maintain this position our R & D/Innovation, Quality and Production teams all participate in collaborative projects with some of the most knowledgeable people in dairy technology. These comprises of researchers from dairy research institutes, leading academics and universities in dairy science within Ireland and abroad. This is vital to our fundamental success.

Lakeland Dairies - Food Ingredients dedication to use the latest science and technology advancements in dairy ingredients is at the heart of what we strive to achieve and we are now inviting applications from suitably qualified and experienced professionals for the position of Research Development & Innovation Manager. 

To apply, please visit the careers section where you will find more details along with an online application form.

Closing date for receipt of applications is 5pm Friday 7th April, 2017.

Lakeland Dairies is an equal opportunities employer.

Lakeland Dairies appoints new Board Members

Lakeland Dairies appoints new Board Members

Following Board elections, Gerard Donohoe (left),  Michael Dobson (centre) and Andrew McHugh (right) were appointed to the Board of Lakeland Dairies representing Cavan West/Leitrim, Longford North/Leitrim South and Longford South, respectively. 

They are pictured here with Lakeland Dairies Chairman Alo Duffy (second from left) and Chief Executive Michael Hanley (second from right).

The new appointees will fill Board vacancies made by directors John Farrell, John Taylor and Sean Glennon who had concluded their term of office and were due to retire from the Board under the rules of the Society.

Lakeland Dairies processes over 1 Billion litres of milk annually collected from 2,500 high quality milk suppliers, across 15 counties north and south.  The co-operative manufactures and export an extensive range of top quality dairy foodservice and food ingredient products for blue-chip customers in 78 countries worldwide.

Duignan appointed Member Relations Manager at Lakeland Dairies

Duignan appointed Member Relations Manager at Lakeland Dairies

Eamon Duignan (pictured) has been appointed Member Relations Manager of Lakeland Dairies.

From Cornafean, Co. Cavan, he is an Agricultural Science graduate of UCD where he received first class honours specialising in animal science. Duignan joined Lakeland Dairies’ Graduate Programme and the Member Relations Department of the co-operative in 2014. In parallel with this, he completed a Diploma in Management in conjunction with the Irish Management Institute (IMI). He succeeds Dermot Coyle who retired recently after many years of dedicated service to the co-operative.

Duignan said, “Together with my colleagues, I look forward to the further development of our member relations programmes which are designed to support dairy farmers with the most relevant information, advice and assistance across every aspect of their milk production and supply arrangements. Meeting the needs of our many dairy customers worldwide begins on local milk supplying farms where we are fortunate to have a very high quality of milk supplied for processing. Our priority is to ensure long term and sustainable success for all of our milk producers and we will continue to work closely with them in achieving this aim.”

Lakeland Dairies processes over 1 Billion litres of milk annually collected from 2,500 high quality milk suppliers, across 15 counties in the Republic of Ireland and Northern Ireland.  The co-operative manufactures and export an extensive range of top quality dairy foodservice and food ingredient products for blue-chip customers in 78 countries worldwide.

Key Management opportunity - Commercial Manager Lakeland Agri

Key Management opportunity - Commercial Manager Lakeland Agri

The Commercial Manager of Lakeland Agri would be responsible for this high performance and profitable business unit supporting our extensive milk supplier base and customers on a cross border basis. 

With best in class expertise and experience, underpinned by technologically advanced facilities, Lakeland Agri manufactures and retails a complete range of premium quality ruminant feeds marketed under the Lakeland RumiSmart Sustain feeding system. 

For full details of this position, please download the PDF below:

Download Job Description

How to Apply 

If you want to play an important leadership role in the Lakeland business and if you have the skills we require, please contact Stephen Farrell at our recruitment consultants Clark on +353 (0)45 881 888 for a confidential discussion, or send your CV to stephen@clark.ie 

Delahunty appointed General Manager of Lakeland Agri

Delahunty appointed General Manager of Lakeland Agri

Mark Delahunty has been appointed General Manager of Lakeland Agri, the agribusiness division of Lakeland Dairies. He will report to Group Chief Executive Michael Hanley and joins the executive management team of the co-operative.

Mr. Delahunty succeeds Dr. Pat Shiels who has been appointed General Manager Designate of the co-operative’s Dairy Food Ingredients Division.

Delahunty will be responsible for the strategic and commercial development of Lakeland Agri which is a high performance business unit supporting Lakeland’s extensive milk supplier base and customers on a cross border basis. He holds a Bachelor of Agricultural Science Degree from University College Dublin and an MBA from University of Limerick. 

Mark Delahunty joined Lakeland Agri as Commercial Manager in 2014, having previously held senior roles within the Irish Agrochemical and fertilizer industries and also the Environmental Industry sector in Ireland and overseas.

Group Chief Executive Michael Hanley said, 

“Mark brings extensive expertise and experience to this senior management role. He will drive the continuing success of Lakeland Agri in the interests of our many valued customers who avail of our high performance integrated feeding systems. He will continue to develop the resources and expertise of Lakeland Agri to promote the further growth and development of this very important division for the co-operative.”

With technologically advanced facilities, Lakeland Agri manufactures and retails a complete range of premium quality ruminant feeds under the Lakeland RumiSmart Sustain feeding system. This is supported on-farm by expert nutritionists and technical feed representatives. Lakeland Agri also retails an extensive range of other farm inputs through its stores business.

10% increase to €12.8m in Profit Before Tax, from revenues of €588.5m in 2015

10% increase to €12.8m in Profit Before Tax, from revenues of €588.5m in 2015

Lakeland Dairies has reported a positive business performance in spite of volatile global dairy market conditions, in the co-operative’s annual report for 2015.

  • Group revenues of €588.5m reflect a 6% reduction due to global conditions where there is continuing pressure on the returns from the markets.
  • Profit Before Tax increased by 10% to €12.8m.
  • The Society concluded 2015 with a strong balance sheet and shareholders’ funds of €109m.
  • During the year, Lakeland Dairies acquired Taste Trends Ltd., the leading UK based maker of Coolicious branded frozen yogurts.
  • Lakeland Dairies also commenced the expansion of milk powder processing operations at Bailieboro, Co. Cavan, which proceeded on schedule throughout the year.
  • The co-operative opened a new Global Logistics Centre at its dairy foodservice manufacturing site in Newtownards, Co. Down, and other dairy processing sites, including Killeshandra, Co. Cavan, were also upgraded.
  • Milk supply volumes (currently 900 million litres of milk per annum) increased by 13% which contributed to overall efficiencies across all dairy processing operations.

Performance by Division

Foodservice Division revenues increased by 6% to €201.7m, bolstered by continuing business development initiatives and consistently strong demand for the innovative products that Lakeland Dairies sells across the hospitality, catering and convenience market segments. Lakeland is the dairy foodservice market leader in Ireland and the UK. The foodservice market continues to benefit from gradually improving consumer sentiment, with strong interest for Lakeland Dairies products and a consequent increase in volumes shipped.

Food Ingredients Division revenues of €324.4m reduced by 14% reflecting lower market prices where there is an oversupply of dairy products on world markets due to an increase in global milk production which is particularly evident in Europe. Lakeland Dairies Food Ingredients produced record volumes with 107,000 tonnes of milk powders exported last year, including caseins, and over 31,000 tonnes of butter.

Agribusiness Division revenues increased by 8% to €62.4m, based primarily on sales of 162,000 tonnes of high quality animal feeds and over 25,000 tonnes of fertilisers.  Growth in feed volumes was supported by incremental new business and some increases in feed use following the abolition of milk quota. 

The co-operative’s Rumismart Sustain programme continued to support higher production by farmers from static or reduced resources. Lakeland Dairies also announced a further phase of its Joint Research Programme with Teagasc which uses local analysis to assist farmers in making informed decisions around the productivity of their farms.

Michael Hanley, Group CEO of Lakeland Dairies said:

Lakeland Dairies continues to make strong progress. As well as strategic developments, we have achieved positive business results in spite of volatile dairy market conditions. We are focused on maximum efficiency across all operations. The balance within our business has enabled us to support milk price for our producers throughout the year.

These are difficult times for dairy farmers. Our priority is to achieve all future growth on a long term and sustainable basis, to maximise milk price and to minimise future market volatility for all of our milk producers.  We have invested considerably to ensure that we have globally competitive operations. We have the customers, product portfolio and economies of scale required to add market value to every litre of milk processed.

Lakeland Dairies’ Chairman, Alo Duffy said:

Following from the abolition of quotas and the ongoing imbalance in global dairy markets, 2015 was a challenging year for milk producers and the dairy industry.  The goal of all our developments is to underpin and maximise milk price while retaining our capacity to re-invest in the business.  This will be achieved through a sustainable business model including appropriate economies of scale with in-built efficiencies, cost effectiveness and a focus on quality, innovation and growth.

Lakeland Dairies

Lakeland Dairies is a leading global provider of excellent dairy products made to the most exacting international standards of quality, traceability and reliability across all applications. The co-operative currently processes 900 million litres of milk each year, supplied by dairy farmers from 15 counties on a cross border basis.  Following from the agreement (effective 01 May 2016) to acquire Fane Valley’s dairy business at Banbridge, Co. Down, Lakeland Dairies will process over 1.1 Billion litres of milk annually. Lakeland Dairies markets 230 dairy foodservice and food ingredient products to 77 countries worldwide, exporting close to 100% of its entire production capacity to every corner of the globe.

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Fane Valley and Lakeland Dairies finalise Deal

Fane Valley and Lakeland Dairies finalise Deal

Left to right: Lakeland Dairies’ Group Chief Executive Michael Hanley and Chairman, Alo Duffy, with William McConnell, Chairman, and Trevor Lockhart, Chief Executive of Fane Valley Co-operative.

Fane Valley and Lakeland Dairies Co-operative Societies have confirmed that final agreement has been reached on a deal structure which will see Lakeland acquire the Fane Valley Dairies business based at Banbridge, Co. Down, effective from 1st May 2016. 

This simplified deal structure is considered to be a better option than the originally proposed strategic joint ventures, announced previously in August 2015, which would have involved both the dairy and agri-business interests of the respective businesses.

Michael Hanley, Chief Executive of Lakeland Dairies Co-operative stated:

The strategic rationale behind Lakeland Dairies and Fane Valley co-operating to advance the interests of their respective businesses is as strong today as it was in August 2015.  It is extremely positive that the Boards of both co-operatives have had the foresight to recognise the limitations of the initially proposed Joint Venture arrangements and the courage to adapt and revise their approach. 

The current market environment is undoubtedly challenging both for producers and processors. However we have a strong ambition, in Lakeland, to further strengthen our position in global markets as a leading provider of high quality foodservice products and dairy food ingredients. 

The agreement we have reached with our neighbouring co-operative, Fane Valley, represents a major step forward for the industry and for Lakeland Dairies, albeit not via the structure initially envisaged. The move will reinforce our continuing commitment to pay the highest possible milk price to all our milk producers through continuing innovation, efficiency and excellence in everything we do.  We look forward to working with our colleagues in Fane Valley to progress the mutual success of our milk suppliers in the years ahead.

Mr Hanley concluded:

Producers with queries on the new arrangements are encouraged to contact their usual farm liaison officer who will be pleased to provide further information.

New Vice-Chairman announced at Lakeland Dairies

New Vice-Chairman announced at Lakeland Dairies

Left to right: Michael Hanley, Group Chief Executive; Colin Kelso, Vice-Chairman and Alo Duffy, Chairman, of Lakeland Dairies.

Lakeland Dairies has announced the appointment of Mr. Colin Kelso, a dairy farmer from Dungannon, County Tyrone as Vice-Chairman of the Co-operative.  

Mr. Kelso joined the Board of Lakeland Dairies in 2013. He succeeds Gerry Melia who has served with distinction as Vice-Chairman since 2012 and who continues as a Board Member.

Lakeland Dairies’ Chairman, Alo Duffy welcomed Colin Kelso as Vice-Chairman  and also paid tribute to outgoing Vice-Chairman, Gerry Melia for his excellent service to the co-operative.

Lakeland Dairies is one of Ireland’s leading dairy processing co-operatives.  Farmer owned Lakeland operates across fifteen counties on a cross border basis, processing over 1 Billion litres of milk annually into a wide range of value-added dairy foodservice products and food ingredients which it exports worldwide.

Minister Bell opens Major new Global Logistics Centre for Lakeland Dairies in Newtownards

Minister Bell opens Major new Global Logistics Centre for Lakeland Dairies in Newtownards

Pictured: Northern Ireland’s Enterprise, Trade & Investment Minister Jonathan Bell MLA (centre) with Alo Duffy, Chairman (left) and Michael Hanley (right), Group Chief Executive of Lakeland Dairies, at the opening of Lakeland Dairies’ new €10m Global Logistics Centre at its foodservice dairy processing site in Newtownards, Co. Down.

Enterprise, Trade and Investment Minister Jonathan Bell today officially opened a major new Global Logistics Centre for Lakeland Dairies at our Pritchitts dairy foodservice manufacturing site in Newtownards, Co. Down.

The new Global Logistics Centre was completed recently by Lakeland Dairies following an investment of €10 million which has been supported by Invest Northern Ireland. The investment positions Newtownards as a key strategic site for Lakeland Dairies where our dairy foodservice manufacturing plant provides employment for over 200 people from the local community.

The keynote event was attended by the CEO of Lakeland Dairies, Michael Hanley and the entire Board of the co-operative with Chairman, Alo Duffy. The event forms part of a series of open days where hundreds of farmer milk producers and their families will tour the major new facility over the coming days.

Welcoming the development, Jonathan Bell said:

This new centre, supported by Invest NI, is among the most technically advanced global export facilities in Europe.

This strategic development by Lakeland Dairies will underpin the long term export potential of dairy products made using locally produced milk sourced directly from Northern Ireland dairy farmers. The new development by Lakeland Dairies includes an overall enhancement of facilities and operations at Newtownards including milk intake and processing systems. I am pleased Invest NI has been able to assist the new centre through the offer of £1.5 million to support these investments.

The willingness by management and members to invest in this important technology is a clear statement of their intent to drive increasing export growth and to create a sustainable business model that will offer jobs and security throughout the dairy supply chain for many years to come.

Pritchitts in Newtownards is an innovative dairy foodservice arm of Lakeland Dairies which is a farmer owned dairy co-operative. Lakeland collects over 800,000 litres of milk directly from Northern Ireland dairy farmers each day and over 1 Billion litres of milk north and south each year

Michael Hanley, Group Chief Executive of Lakeland Dairies said:

As a leading dairy processing co-operative, our mission is to create long term sustainability for our milk producers through value-added processing and export led growth. This requires the right economies of scale, the most competitive processing plants in the industry and the achievement of total efficiency across all of our operations. We are very pleased to acknowledge the expertise and support we have received from Invest NI for this flagship development in Newtownards.

Due to the technologically advanced capability of our plants, we have a constant flexibility to divert milk into the highest value dairy product categories.  Our new Global Logistics Centre will give us a further competitive advantage as we continue to serve our customers throughout the world and target new market development opportunities in the interests of our producers.

Using state-of-the-art technology, the Newtownards site has 12 different production lines making over 100,000 tonnes of dairy products and 700 million individual product units each year. These include ice cream mixes, UHT milk, milk portions, flavoured milks, added value dairy creams, powdered desserts, cappuccino toppings and ice cream powder. The co-operative markets 170 high quality dairy foodservice and food ingredient products to 77 countries worldwide, exporting close to 100% of its entire production capacity to every corner of the globe.

This new development by Lakeland Dairies has included an overall enhancement of facilities and operations at Newtownards including milk intake and processing systems. Invest NI has offered Lakeland Dairies £1.5 million to support these investments.

The new centre is fully automated with new technology, robotic systems, over 14,000 individual pallet spaces and a simultaneous loading capacity for up to 11 forty-foot container vehicles at any one time.

Lakeland Dairies and Fane Valley announce 2 Strategic Joint Ventures

Lakeland Dairies and Fane Valley announce 2 Strategic Joint Ventures

Left to right: Lakeland Dairies’ Group Chief Executive Michael Hanley and Chairman, Alo Duffy, with William McConnell, Chairman, and Trevor Lockhart, Chief Executive of Fane Valley Co-operative.

In a significant and strategic development, Lakeland Dairies and Fane Valley - have announced they will create 2 major new Joint Venture businesses which will enhance economies of scale and overall competitiveness for their farmer members, milk producers and customers at home and abroad.  

Lakeland Dairies and Fane Valley are neighbouring and friendly societies.  Each has a heritage of excellence in co-operative farming spanning well over a century and they share common business development aims in the interests of their members, producers and rural communities.

Both co-operatives are highly successful agri-food and agribusiness industry players with excellent manufacturing facilities and complementary strengths and advantages in their various markets.

Recognising the opportunities presented by the continuing growth and expansion of the agri-food industry, on the island of Ireland and internationally, the co-operatives have agreed to a combination of their respective dairy and agribusiness operations for mutual commercial benefit. 

Following the approval of the Boards of each society, two specific Joint Venture companies will be established covering two lines of business which will benefit from merged resources.   

(1) The Agribusiness Joint Venture

The first Joint Venture is being established by a merger and pooling of both of the societies’ feed manufacturing, sales and stores activities into a major agribusiness company to be managed by Fane Valley.   Lakeland Dairies will be a partner and shareholder in the Agribusiness Joint Venture and will also be represented on the board of the new company.

Fane Valley and Lakeland Dairies currently have an annual animal feed manufacturing capacity of 310,000 tonnes and 190,000 tonnes respectively, with a broad range of high performance feed products sold north and south. The merger of both agribusiness operations will create a business with greater efficiencies, larger scale, buying power and the capability for future growth and service delivery across a larger geographic area.  

The projected annual revenues of the Agribusiness Joint Venture will be in the order of £125 million / €175 million. 

 (2) The Dairy Joint Venture

The second Joint Venture is being established by a merger and pooling of both of the societies’ dairy processing activities and operations, to be managed by Lakeland Dairies. Fane Valley will be a partner and shareholder in the Dairy Joint Venture.    

In Northern Ireland, Fane Valley and Lakeland Dairies currently procure 250 million litres and 330 million litres of milk respectively each year for processing into a wide range of value added dairy products and food ingredients, all of which are exported worldwide.  

The purpose of the Dairy Joint Venture is to create a business of greater scale and efficiency with the capability to grow and to compete even more intensively on a global basis.  

Combined with the total existing Lakeland Dairies milk pool, the Dairy Joint Venture will process over 1 Billion litres of milk annually.   This will enhance the overall capacity of both co-operatives to maximise returns from the markets in the interests of their milk producers. 

The projected annual revenues of the Dairy Joint Venture will be in the order of £480 million / €670 million.

Fane Valley milk suppliers will receive the same benefits and provisions as Lakeland Dairies milk suppliers and Fane Valley will have direct representation on the Board of Lakeland Dairies.

Both co-operative societies will otherwise continue to operate on an independent basis and each will support the other in the operation of the Joint Ventures.  

It is envisaged that the possibility of a full merger of the two societies will potentially be considered in the future. This would be subject to member approval in each co-operative. 

Michael Hanley, Chief Executive, Lakeland Dairies said,

"The establishment of these strategic joint ventures will create further value and benefits for the producers and customers of both co-operatives.  This development underpins our mutually shared ambition to provide the highest possible milk prices to producers.  Through this combination, we are adopting an innovative and strategic approach to maximising our efficiencies and overall strength in addressing the growing worldwide market demand for dairy products and food ingredients."

Trevor Lockhart, Chief Executive of Fane Valley said,

“This far sighted agreement represents the strong commitment of Fane Valley and Lakeland Dairies to support our members, milk producers and customers through the development of an even more competitive market position on a joint venture basis.  The combined strength and backing of both co-operatives will ensure success for our agribusiness and dairy operations and will underpin the future success of our business.”

The Chairmen of both co-operatives also commented:

Alo Duffy, Chairman of Lakeland Dairies said,

"Fane Valley is a co-operative which we greatly respect and we are very pleased to enter this strategic dairy and agribusiness alliance with them.  This is a very welcome development where the joint ventures offer clear prospects for secure growth and greater profitability for our respective farmer owned societies."

William McConnell, Chairman of Fane Valley Co-operative said

“This partnership will strengthen our position as a co-operative society while providing farmers with a firm platform for future sustainable growth and development.  We look forward to working with Lakeland Dairies as we work together to exploit the future benefits of this development for our producers.”

Fane Valley Co-operative Society Ltd.

>Fane Valley Co-operative Society is a progressive and successful agri-food business with interests in dairy processing, red meats, feed compounding, agricultural supplies and animal by-products and fat processing, operating across Europe.  The co-operative was formed in 1903 and is farmer owned and farmer controlled.

Fane Valley Dairies, based in Banbridge, Co. Down, is one of Ireland’s leading manufacturers of whole and skimmed milk powders with an annual production capacity in excess of 30,000 tonnes.  Fane Valley Dairies market a range of powders, butter and butter oils to customers across Africa, South America and Asia. The Mourne Maid brand is widely known across the world.

Fane Valley Feeds is Northern Ireland’s second largest feed manufacturer with an annual manufacturing capacity in excess of 310,000 tonnes, for the ruminant, pig and poultry sectors.  Fane Valley feed mills produce the highest quality dairy, beef, sheep, pig and poultry rations formulated to meet the needs of individual farmers.

Fane Valley Stores is the largest retail distributor of animal health and farm supplies in Northern Ireland, with thirteen retail stores in Armagh, Altnamachin, Augher, Ballycastle, Ballymena Livestock Mart, Banbridge, Eleven Lane Ends, Lisbane, Markethill Livestock Mart, Omagh, Omagh Livestock Mart, Rathfriland and Portadown.

The new Agribusiness Joint Venture with Lakeland Dairies will have a total potential output of over 500,000 tonnes of animal feeds per annum.

The Joint Ventures announced with Lakeland Dairies relate only to Fane Valley’s dairy and agribusiness operations and not to any other entities or holdings owned by Fane Valley Co-operative Society Ltd.

Lakeland Dairies Co-operative Society Ltd.

With a heritage of excellence in dairying spanning over 117 years, Lakeland Dairies is one of Ireland’s largest dairy co-operatives with major processing operations north and south.   Farmer owned and controlled Lakeland Dairies currently collects and processes over 800 million litres of milk annually on a cross border basis across 15 counties. 

Lakeland markets 170 high quality dairy foodservice and food ingredient products in over 70 countries worldwide, exporting close to 100% of its entire production capacity to global markets.   It manufactures over 90,000 tonnes of milk powders a year.  This will rise to 130,000 tonnes on completion of a new £28 million /€36 million milk dryer which is currently being built at Bailieboro, Co. Cavan, where it also manufactures 25,000 tonnes of butter annually.   

The new Dairy Joint Venture with Fane Valley will process over 1 Billion litres of milk annually with a total milk powder output of over 160,000 tonnes per annum, in addition to a complete portfolio of value-added dairy foodservice products.

Lakeland Dairies also recently completed a highly automated new £8 million / €10 million Global Logistics Centre at its major dairy foodservice processing site in Newtownards, Co. Down.

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Lakeland Dairies reports increase in Revenues and Profits

Lakeland Dairies reports increase in Revenues and Profits

Lakeland Dairies has reported a 15% increase in revenues to €625.8 million for 2014, yielding an operating profit of €12.9 million, up by 10% on the previous year.

Summary

  • Group annual revenues of €625.8m
  • Operating profit increased by 10% to €12.9m
  • Profit before tax increased by 5% to €10.9m
  • Food Ingredients Division revenues increased by 22% to €377.9m
  • Foodservice Division revenues increased by 12% to €190.3m
  • Agribusiness revenues were €57.5m for the year.
  • Lakeland Dairies closed its financial year with Shareholders’ Funds of €90.5m and an overall strong balance sheet.

Group Chief Executive Michael Hanley said,

“These are very robust results, set against difficult market conditions in 2014, where Lakeland Dairies also paid a competitive milk price.  We experienced consistently strong demand across our portfolio of dairy ingredients and dairy foodservice products. This was achieved through organic growth and new business development activity in key markets including EMEA and Asia. 

 

“Consumer sentiment has improved gradually in key markets. This benefited our foodservice customers and fed into stronger sales across the hospitality, catering and convenience market segments. There is a growing requirement for high quality milk powders and functional ingredients in nutritional, pharmaceutical and beverage markets, where we serve leading food manufacturers and infant formula customers worldwide.

 

“In 2014 we announced a planned €36m investment in ‘Bailieboro Dryer Number 3’, construction of which has now started in the current year for completion in 2016. Lakeland Dairies currently produces 90,000 tonnes of milk powders a year and this will rise to 130,000 tonnes on completion of the new Bailieboro Dryer Number 3. The same site also produces 24,000 tonnes of butter and butter products. This major dual factory presence on a single site provides total flexibility in our milk throughput, for maximum value added returns, and it contributes to overall economies of scale for our food ingredients business.

 

“During the year, we completed a new €10m global logistics centre at our major foodservice processing centre in Newtownards, Co. Down. This is a highly automated facility with over 14,000 individual pallet spaces and robotic systems to manage, assemble and prepare consignments for export. It will ensure our capacity to meet global customer requirements with the maximum flexibility.

 

“Our ice cream and UHT dairy manufacturing facilities at Killeshandra have also been upgraded.  Our new ‘milk stick’ dairy product was developed for the global dairy foodservice industry including airlines, convenience outlets and cafés. It has received an immensely positive reaction from our customers.

 

“Worldwide usage of dairy ingredients and foodservice dairy products is driven by global trends including wellness, convenience, safety and sustainability. This is advantageous to Lakeland Dairies where we are specialists in key areas including protein technology, aseptic manufacturing processes, emulsion technology and spray drying technology.  We see a consistently growing opportunity in areas including infant formula, dairy proteins and health related nutritional products including lactose and whey, among other categories.

 

“Lakeland Dairies has created a processing, marketing and worldwide distribution capability designed to enhance the future long term sustainability and profitability of our business. We currently process over 800m litres of milk annually.  This will rise to over 1 billion litres annually by 2020 and that capacity will be underpinned by enhanced innovation, new product developments and intensive business development activity.”

Lakeland Dairies’ Chairman, Alo Duffy said,

“Our mainly pasture based production system gives us many advantages in serving world markets.  It also helps the positioning of our products where they originate from milk produced on high quality farms in a natural and green environment. Ultimately, it’s the global food companies and consumers worldwide who are influenced by these factors and if we can continue to supply the products that they want to buy from us then our expansion will continue to be successful.”

Lakeland Dairies begins expansion of milk powder processing operations

Lakeland Dairies begins expansion of milk powder processing operations

Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, today announced that Lakeland Dairies Co-operative Society is beginning a €36 million investment in an expansion of milk powder processing operations at Bailieboro, Co. Cavan. The investment has been supported by the Department of Jobs, Enterprise and Innovation through Enterprise Ireland.

Construction will start immediately and Minister Bruton today turned the first sod for the new development together with Alo Duffy, Chairman of Lakeland Dairies and Group Chief Executive, Michael Hanley.  The event was also attended by the Minister for Arts, Heritage and the Gaeltacht, Heather Humphreys TD.

The overall development will lead to the creation of 81 jobs across the Lakeland Dairies Group over a five year period. Up to 180 construction jobs will also be created by contractors during the building, installation and commissioning phases for the new processing facilities.

Welcoming the announcement Minister Bruton said: “Ireland’s food industry offers massive potential for regional employment, which is a major focus of the Government’s 2015 Action Plan for Jobs.  The removal of milk quotas later this year offers huge opportunities that we intend to exploit in a planned and strategic way in order to support jobs growth across every region in Ireland.

“Today’s announcement of 81 extra jobs in Bailieboro through a €36m investment, supported by my Department through Enterprise Ireland is a great boost for Cavan and the Border region. At the heart of our jobs plan is creating a powerful engine of Irish enterprise alongside the strong multinational sector. Investment by Irish businesses like Lakeland Dairies is more likely to be in rural areas, and has a massive knock-on impact on the local economy, through construction, supply and service businesses. With continued implementation of our plan, I am determined to ensure that we can see more announcements like this in the coming years across every region of Ireland.

One of Ireland’s leading farmer owned dairy processing co-operatives, Lakeland Dairies processes over 800m litres of farm produced milk annually into a wide range of value-added dairy foodservice products and food ingredients which it exports to over 70 countries worldwide. Following the abolition of milk quotas later this year, annual milk supply to Lakeland Dairies is expected to increase by some 40% to over 1 billion litres by 2020.  The development by Lakeland Dairies is designed to ensure that the co-operative is well positioned to take advantage of all future market opportunities for its milk producers.

The expansion will see the installation of a new 7 tonne per hour milk drying facility at Bailieboro where total milk powder production capacity will increase to 19 tonnes per hour.

Lakeland currently produces 80,000 tonnes of milk powders a year and this will rise to 130,000 tonnes on completion of the project in 2016.   The co-operative also produces 24,000 tonnes of butter on the same site which provides for considerable flexibility in milk throughput and overall economies of scale for the food ingredients business.

Commenting on the announcement Minister for Arts, Heritage and The Gaeltacht, Heather Humphreys TD said: 

The creation of 81 new jobs at Lakeland Dairies and a further 180 construction jobs through the €36m investment is fantastic news for Bailieboro. The agri-food sector is a vital source of employment in Cavan and Monaghan, so I am delighted to see that Lakeland Dairies is planning to maximise on the opportunities offered by the abolition of milk quotas later this year. Companies such as Lakeland are very important to the economy in rural areas like Bailieboro. This announcement will provide a boost to the other local businesses and to the wider region.  The Government is committed to supporting the agri-food sector, which will play an increasing important role as jobs growth continues in the regions.

Lakeland Dairies’ Chairman, Alo Duffy said,

When EU milk quotas are abolished this year, Lakeland Dairies’ milk producers will have the freedom to increase milk output in line with continuing and future growth in global demand for dairy products.  Lakeland Dairies is focussed on the creation of a bright and sustainable future for our milk producers.  This includes investments in modern and streamlined plants which guarantee an expanded milk processing capacity and provide the flexibility to meet global market needs.

Lakeland Dairies’ Group CEO Michael Hanley said,

Growth in our global dairy ingredients business is being fuelled by consumer trends and developments in food industry sectors where we have access to key markets and customers throughout the world.  Over the past five years we have transformed our processing capabilities and have also underpinned our future export potential with new global logistics facilities. The expansion of our operations at Bailieboro will create further advantages for our milk producers. In particular, we see continuing opportunity in the areas of infant formulae, dairy proteins and health related nutritional products, among other categories, where we are a globally recognised leading supplier of the highest quality milk powders.

Michael Cantwell, Food Division Manager, Enterprise Ireland said:

Enterprise Ireland has worked closely with Lakeland Dairies in developing its expansion and investment plans for the post milk quota era. We are confident that this investment will result in the maximum return to the company and its farmer shareholders by focusing on high quality, value added milk powders for inclusion in top end applications such as nutritionally enhanced foods and infant formula. The investment will have very positive impacts for the region, not only in terms of the 81 new direct jobs it will create, but also in the indirect benefits to the local and wider economy.

Lakeland Dairies acquires UK frozen yogurt maker Taste Trends

Lakeland Dairies acquires UK frozen yogurt maker Taste Trends

Lakeland Dairies has announced the acquisition of Taste Trends Ltd - the leading UK based maker of Coolicious branded fat-free frozen yogurts, for an undisclosed sum.

The acquisition provides an excellent strategic fit for both companies where each has unique capabilities relevant to the foodservice sector worldwide. It complements Lakeland Dairies’ extensive dairy foodservice business where the co-operative plans to expand sales of Coolicious frozen yogurt products to international markets.  Both companies also specialise in working with clients to bring new foodservice concepts and solutions to market.

Based in Surrey near London and established for over 20 years, Taste Trends is the largest maker of frozen yogurts in Europe and its Coolicious products are the leading brand of frozen yogurt in the foodservice sector, selling over 17 million portions each year. 

Taste Trends has specialist expertise in frozen yogurt innovation with delicious recipes, market knowledge and insight. It specialises in a range of product offerings including Coolicious soft serve frozen yogurts, frozen yogurt smoothie base, scoop frozen yogurt for milk shakes and fruit mixes for smoothies. The company also includes soft serve ice-creams, sorbets and granita semi-frozen drinks among its Coolicious branded products range.

This acquisition gives Lakeland Dairies the opportunity to benefit from the continuing major growth in frozen yogurt sales across the globe. The co-operative exports to over 70 countries throughout the world and many of these countries will now be supplied with Coolicious frozen yogurt from well-established Lakeland shipping and distribution channels. 

Indicatively, the UK frozen yogurt market had a 29% compound growth rate from 2011 – 2014 and this continues to grow. The total value of the frozen yogurt market in the United States now exceeds $1.5 billion.

Lakeland Dairies’ Chairman, Alo Duffy said,

“Taste Trends is a long established and very progressive company with an excellent business model. I look forward to its continuing growth and success as part of Lakeland Dairies.”

Lakeland Dairies Group CEO Michael Hanley said,

“We’re very pleased to make this acquisition. Taste Trends is an innovative business with an excellent base of foodservice clients. This includes market segments serving consumer demand for healthy refreshments including quick service restaurants, casual dining, general restaurants and catering.

Frozen yogurts are natural and wholesome products and they are proving immensely popular with consumers. As a product category they are also perfectly aligned with global trends of healthy eating, natural dairy products and food customisation for specific consumer markets.

Lakeland Dairies is the Irish and UK dairy foodservice market leader. We look forward to developing this new opportunity further across our international foodservice business using our well defined routes to market. We will also continue to examine the potential for further acquisitions where this would complement our business, enhance market reach and add value for our milk producers.”

Lakeland Dairies is a leading Irish dairy processing co-operative and a global market leader in the manufacturing of dairy based products. The co-operative collects over 800 million litres of fresh milk annually from family owned farms on a cross border basis, processing this into a range of value-added dairy foodservice products and food ingredients which it exports worldwide.

Lakeland Dairies Chief Executive welcomes new Website

Lakeland Dairies Chief Executive welcomes new Website

Lakeland Dairies CEO Michael G Hanley today welcomed the new look design of the Society’s website: www.lakelanddairies.com
Commenting at the launch of the new website Mr. Hanley said; "this new design, which is capable of being viewed across all platforms from desktop to smart phones is a reflection of the modern and progressive organisation that Lakeland Dairies is."  

Mr. Hanley went on to say that a key feature of the new design is the accessibility that it offers our farmers and milk producers. The flow of relevant information to our members will now be greatly facilitated by the ‘Farmers Log in’ function of the site which will be a space where milk suppliers will have secure and instant access to key information about their transactions with the Society thereby helping them to streamline their own businesses and drive greater efficiency.

Mr. Hanley also commented on the new treatment of the Lakeland Dairies logo saying; "this is a subtle change which we will roll out across all parts of our business in a gradual and cost efficient way and which is again reflective of the innovative and progressive focus of the Society whilst very importantly retaining all of the unique traditions that represent the history of Lakeland Dairies and all of the people, past and present, who helped to make it the success story that it is today".

Pritchitts Launches Smart Choice Promotion

Pritchitts Launches Smart Choice Promotion

Pritchitts, the foodservice division of Lakeland Dairies, has launched an exciting new student campaign in support of its flavoured milk range, Modern Milk.

The Smart Choice promotion gives students the chance to win one of ten smartphones of their choice, every week until the 14th December 2014. Students simply need to grab a carton of their favourite Modern Milk - Chocolate with a Hint of Fudge, Coffee with a Hint of Vanilla or Strawberry with a Hint of Cream - and tweet a selfie to @ModernMilk using the hashtag #ModernMilk as well as their university twitter handle.

To support the campaign, caterers can claim their FREE Smart Choice point-of-sale kit containing eye-catching posters, wobblers and cards to highlight the promotion by calling 020 8290 7020.

Simon Muschamp, Head of Marketing, Pritchitts, says;

“The response to Modern Milk has been overwhelming from both university caterers and students. We’ve been building a legion of fans by sampling across the country during Fresher’s Week and through our Twitter and Facebook page - we’re very excited to launch our Smart Choice promotion and the next phase of our high impact, student initiative.”

Made with natural flavouring, semi-skimmed milk and added vitamin D, Modern Milk provides 16-21 year olds with a fantastic source of calcium and the ‘sunshine vitamin’ which aids strong bones and teeth. This flavoursome product also makes a healthy, filling snack between meals and a convenient on-the-go breakfast option.

Universities can find out for themselves the benefits of Modern Milk by watching the following video of a recent sampling day:

 

Simon adds, “Caterer are under huge pressure to offer healthier soft drink options that students will buy. Modern Milk’s great range of flavours, the nutritious power of milk, along with our new must win Smart Choice promotion makes it a win-win for both universities and students.” 

With a long ambient shelf life Modern Milk is hassle free, but is best served chilled and enjoyed straight from the fridge. It comes in a 330ml fully-recyclable carton with a straw, making it ideal for drinking on-the-go and vending machines.

Modern Milk has a shelf-life of six months and is available in 27 x 330ml trays.

Pritchitts is part of Lakeland Dairies, one of the largest farmer-owned dairy co-operatives in Ireland. Lakeland collects its fresh milk from over 2,100 family farms, operating within a fifteen county catchment area within the island of Ireland.

Look to Ireland for More Milk - Lakeland CEO tells Chinese Ambassador

Look to Ireland for More Milk - Lakeland CEO tells Chinese Ambassador

The major dairy processing co-operative, Lakeland Dairies has been exporting value-added dairy products to China for the past four years and is continuing to look for new opportunities in the Chinese market, CEO Michael Hanley told the Chinese Ambassador to Ireland Jianguo Xu as they talked over a dessert of Lakeland Dairies ice cream during the Ireland China Business Conference hosted by Cavan Chamber of Commerce. 

Lakeland collects and processes milk from dairy farms throughout the northern region of Ireland.

Hanley said that Irish dairy exports to China have increased from €50 million in 2011 to over €170 million last year.  As incomes in China increase, the market for imported food is expected to continue to grow in the region of 17% annually.  With a population of 1.3 Billion people, it is currently the world’s second largest economy and is predicted to overtake the US as the largest economy during the current decade.

Addressing the meeting, Ambassador Jianguo Xu expressed his “delight and pleasure” that Lakeland Dairies and other Irish food companies would be participating in a forthcoming Trade Mission to China, which will be led by Agriculture Minister Simon Coveney in November, visiting some of the country’s largest cities including Beijing, Shanghai and Hangzhou. 

The Ambassador also warmly recalled the visit to Ireland in 2012 of the now President of China, Xi Jingping and said that, together with a return visit by Taoiseach Enda Kenny, this had created “great and lasting goodwill” between China and Ireland.  During Mr. Xi’s visit, representatives of the Chinese media had also visited Lakeland Dairies plants where they saw very high standards of excellence in milk quality and dairy production.

Mr. Hanley said that China and wider Asia are importing increasing volumes of dairy from across the globe and that this will continue for the foreseeable future.

“Some estimates indicate that the gap between supply and demand in China is in excess of 10 Billion litres equivalent of milk products which they require annually and this is widening.  They will be one of the key drivers of global dairy consumption growth over the next decade.

“China is a very complex market and a heavily regulated environment with very strict customs and quality checks.  However, I am confident from our experience to date that there is further major potential for Irish dairy exports to China and Lakeland Dairies is exploring these opportunities. 

“We have made significant investments in capacity including manufacturing facilities to cater for the processing needs of our milk producers after quotas are abolished in 2015.  We are currently commissioning a major new global logistics centre which will underpin our international distribution capacity where we currently export close to 100% of all locally produced milk to over 70 countries worldwide in the form of value-added dairy products and food ingredients.”

Mr. Hanley expressed appreciation to Ambassador Xu for his work in fostering stronger trade links between Ireland and China. 

“The Ambassador and his commercial department are very well informed of food industry developments in Ireland. I urged him to keep promoting Irish dairy foods in China where there is a growing and ready supply of naturally produced, high quality dairy products available from Ireland and particularly from our co-operative farmers throughout the Lakeland milk producing region”.

Lakeland Dairies operates across fifteen counties, on a cross border basis, annually processing over 700 million litres of locally produced milk into a range of value-added dairy food ingredients and foodservice products which are exported globally.

Chief Executive welcomes participants on first Graduate Development Programme

Chief Executive welcomes participants on first Graduate Development Programme

Chief Executive, Michael Hanley today welcomed the first group of participants on the Lakeland Dairies Graduate Development Programme.

As he welcomed the new graduates who will take part in the two year development programme Mr. Hanley said; “This is a very exciting time for the dairy industry in Ireland and a wonderful opportunity for not just this group of new talent into Lakeland Dairies but for everyone associated with the company, existing employees and suppliers alike.”

Mr. Hanley also went on to say; “Lakeland Dairies is proud and fortunate to have an excellent, highly skilled and dedicated workforce with strong business capability, research skills, technical expertise and experience and our new Graduate Programme is just one of a number of initiatives to further enhance the skills and talent across all parts of our business.”

Speaking at the welcome event the Head of Group Human Resources Tadhg O’Halloran said; “To sustain our continuing progress we have redefined our human resources strategy to focus on and further enhance our resource capabilities through the development of our people. This cohort of talented young graduates from around the country have joined the co-operative in disciplines ranging from Food Science, Human Nutrition, Information Technology to Supply Chain & Logistics, Engineering and Agri-Science at a time when Lakeland Dairies and the dairy industry at large is expected to rise to the challenges and opportunities that are associated with the removal of milk quota’s in 2015 and will I am sure join with all our employees to ensure that we maximise these opportunities for all of our stakeholders.”

15% increase in revenues to € 545.5 million for 2013

15% increase in revenues to € 545.5 million for 2013

Lakeland Dairies Co-operative Society Ltd. has reported a 15% increase in revenues to € 545.5 million for 2013, yielding an operating profit of € 11.7 million, up by 9% on the previous year.
 
Group Chief Executive Michael Hanley said,  “These are very satisfactory results which reflect the strength and competitiveness of the Lakeland Dairies business. 
 
“Lakeland Dairies continued its growth and development and gained further momentum as a market leading provider of excellent dairy foodservice and food ingredient products.  Buoyant world dairy markets, organic growth in customer demand and intense new business development activity yielded increased revenues and operating profits.

2013 turnover by division“All divisions performed to the highest standards of efficiency in meeting global customer needs. We maximised returns from the markets through the flexibility and scale of our processing plants, driving milk into the highest value product categories in line with market trends.  Lakeland channelled the benefits of its business growth towards producers with highly competitive milk prices for its farmer milk suppliers throughout the year.“With a growing world population and the abolition of milk quota constraints in April 2015, the dairy sector holds considerable promise for the future.  Lakeland has an intensive focus on new business development with high quality contracts and a growing customer base. Our dairy plants have world class technology, thereby maximising the value of every litre of milk sent to us for processing. 
 
“We have successfully built, commissioned and paid for our new milk dryer at Bailieboro. We have the flexibility to operate our other dryers whenever required.  Lakeland Dairies has an excellent dairy food ingredients and foodservice business.  We are building a major new global logistics centre in Newtownards to complement our international distributor partnerships and we have access to all main dairy markets across the world.Shareholders Funds “Lakeland milk suppliers have indicated that they will increase milk production in the years ahead, taking our milk processing to over 1 billion litres annually by 2020. Our increased milk processing intake will also be supplemented by new milk producer entrants and conversions from other sectors to dairy farming, all of whom will be welcome. 
 
“Our priority will be to achieve all future growth on a long term and sustainable basis and to minimise any future market volatility for our producers. We will continue to pay a leading milk price while pushing all of our growing profits back into Lakeland Dairies which will remain a farmer owned and farmer controlled co-operative, working successfully in the direct interests of its stakeholders.” 
 
Lakeland Dairies is one of Ireland’s largest dairy co-operatives with major processing operations north and south.  Lakeland collects and processes over 700 million litres of milk annually across 15 counties.  It offers 170 high quality dairy foodservice and food ingredient products in over 70 countries worldwide, exporting close to 100% of its entire production capacity to global markets.

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