Pictured: Shareholders attending and voting in a show of hands at the SGM of Lakeland Dairies held in Cavan.

The shareholders of Lakeland Dairies have voted resoundingly in favour of adopting new rules aimed at future proofing the ongoing progress and success of the Co-operative.

At a Special General Meeting (SGM) held in Cavan today, the vote was carried by 98%. The outcome helps ensure that Lakeland Dairies can meet the needs of its farm family members across the wide catchment area it serves.

The shareholders of Lakeland Dairies voted on adopting the following changes to the co-op’s rulebook;

• Promotion of Diverse Membership and Governance Participation.
• Ensure meetings are held in a manner that encourages attendance and participation by our diverse members.
• Introduction of Postal, Electronic and Hybrid Voting for elections of members of the Board.
• Updating of language in the Rules to reflect a modern Society e.g. Chairperson replacing Chairman.

Speaking after the SGM, Lakeland Dairies’ Chairperson Niall Matthews welcomed the outcome of the vote.

“I am pleased to see such a strong turnout from our shareholders and, equally, I am delighted to see the votes pass in such a comprehensive manner.

“This is one of the most transformative times in the history of the co-operative movement. We are seeing considerable change coming to farming and with change comes opportunity. I’m a firm believer that having as many voices as possible from diverse backgrounds within our co-operative helps continually to foster progressive ideas and strategies.

“Lakeland Dairies is a progressive, modern and sustainable co-operative, producing food to the highest standards, while supporting the wellbeing of our farm families and rural communities. We want to sustain that in every way possible for the future and having greater diversity throughout our shareholder base is a key part of that process.

“We are a modern co-op with a large supplier base. Therefore, I am also pleased to see the option for in-person as well as hybrid voting for Board elections being carried. We want to ensure that every eligible shareholder has a voice in an election for their Board and this will help farmers have options on how to vote – which is a critical component of a democratic co-operative.”

Pictured: Niall Matthews, Chairperson of Lakeland Dairies chats to Elaine Weir, Dairy Farmer and Joint Shareholder from Rathfriland, Co. Down during the Lakeland Dairies, Special General Meeting in Cavan on Tuesday afternoon, September 12th, 2023.

CLEARLY BETTER - Tommy O’Donaghue, Head of Consumer Foods and Eimear Hanley Marketing Manager of Lakeland Dairies announcing the use of new clear bottle tops by Lakeland Dairies on all two-litre and three-litre cartons. Clear caps are much easier to recycle than traditional red and blue carton caps and help to increase the overall amounts of plastics being recycled.

Lakeland Dairies has continued its long-term commitment to reducing plastic packaging by rolling out new clear caps for all two-litre and three-litre milk cartons on the iconic Champion brand as well as for retailers’ brands.

The traditional red or blue coloured carton tops cannot be easily recycled into food-grade packaging so by replacing coloured milk caps with clear caps makes it easier to recycle and helps reduce colour contamination with high-density polyethylene (HDPE).

This is the latest in a line of commitments made by Lakeland Dairies to reduce the environmental impact of retail milk packaging. In 2017, Lakeland Dairies reduced the weight of the two-litre bottles by 10%. In 2020, Lakeland Dairies reduced the weight of the three-litre bottles by 4%. This was followed by the introduction of 20% recycled material into the bottles in 2021. The bottles, caps and sleeves are now 100% recyclable and are widely recycled in Ireland and the UK.

Separately, in 2020, Lakeland Dairies became the first-to-market with an innovative and pioneering paper straw for its market-leading range of VIVA flavoured milk. In addition to shaking up the sector with eco-friendly alternatives, the 100% recyclable straw has saved an equivalent of 20 tonnes of plastic since 2020.

Speaking about the move to replace coloured milk carton caps with clear ones, Tommy O’Donaghue, Head of Consumer Foods with Lakeland Dairies, said:

“Lakeland Dairies has a long tradition of innovation and serving the needs of our loyal customers while doing so in harmony with nature. We take our responsibility of sustainability producing safe, healthy and nutritious milk extremely seriously.

“Across all our two-litre and three-litre cartons produced for retailers as well as our iconic and market-leading Champion brand, we are playing a real leadership role in reducing unrecyclable plastic from the supply chain. As the blue, red and green milk caps currently need to be processed separately from clear packaging, the change allows Lakeland Dairies to improve the quality of recovered material from household waste and enables the new cap to be recycled back into milk bottles.

“As always, we still have the same great look and taste as before with the freshest of milk from our world-class dairy farmers but now we are even more sustainable. Look out for the clear tops the next time you’re buying Champion milk!”

Special General Meeting, 12th September, 2023.

Please see below a copy of the proposed new Rule Book together with a comparison against the existing Rules of the Society. The password for opening the documents can be found in the cover letter accompanying the Circular. The Circular also contains a summary of the changes being proposed in the Special General Meeting on 12 September, at 1pm in the Hotel Kilmore, Cavan.”

The circular that was posted to members includes a password to access the revised Rules documents below:

Proposed New Rule Book

Proposed New Rule Book with Comparisons to the Existing Rule Book

To access the documents above, click on the link and enter the password included in the circular that was posted to you.

For further information or assistance, please contact Member relations on:

+44 (0) 28 30262311 (NI)

0818 47 47 20 (ROI)

 

Picture: Lakeland Dairies, the island’s largest cross border dairy co-operative, has launched a targeted campaign to encourage more women and other family members to become involved as shareholders in the co-op. Pictured at Virginia Show are (L/R) Susan Casey, Lakeland Dairies Teagasc Joint Programme; Niall Matthews, Chair and Sinéad Brady Lakeland Agri.

Lakeland Dairies, the island’s largest cross border dairy co-operative, has launched a targeted campaign to encourage more women and other family members to become involved as shareholders in the co-op.

Currently some 12% of herd owners in the country are women but this does not reflect the huge, often unseen, work carried out in farm businesses by women.

Across Europe, the co-operative movement in general has struggled to encourage women to become involved at representative and Board levels.

Speaking at the launch of the campaign at the Virginia Show in Co. Cavan today (Wednesday), Lakeland Dairies’ chairman Niall Matthews outlined the benefits of becoming involved in co-op shareholding.

“This is one of the most transformative times in the history of the co-operative movement. We are seeing considerable change coming to farming and with change comes opportunity. I’m a firm believer that having as many voices as possible from diverse backgrounds within our co-operative helps continually to foster progressive ideas and strategies.

“Becoming involved in your local co-op is hugely rewarding. It is your co-op, it is your business and, in many instances, it is your livelihood. I believe it’s important to have a say in the running of your co-op and this is done by becoming a shareholder and getting involved in the democratic processes that decide the overall direction of the business.

“Lakeland Dairies is a progressive, modern and sustainable co-operative, producing food to the highest standards, while supporting the wellbeing of our farm families and rural communities. We want to sustain that in every way possible for the future and having greater diversity throughout our shareholder base is a key part of that process.

“We’re seeing strong interest in this initiative at the Virginia Show and we are now rolling out this campaign across our membership base over the coming weeks and months. We have information for those who want to learn more about the process including how to have shares in joint names and how to have the milk account in joint names.”

Lakeland Dairies has a dedicated channel to support women who want to become shareholders in Lakeland Dairies. The co-operative has written to all shareholders encouraging joint shareholding among family members. Lakeland Dairies welcomes more female and family participation in the life and in the governance structures of Lakeland Dairies. co-operative is encouraging wives, spouses,  partners, family member and young farmers to become joint shareholders as a way of further improving the overall vibrancy and success of their co-op.

Charlie McConalogue TD, Minister for Agriculture, Food & the Marine, with (l-r) Pat Shiels, General Manager Dairy Division, Oliver Neville, Board Member and Niall Matthews, Chairman of Lakeland Dairies, at Tullamore Show.

Growing concern highlighted regarding uncertainty surrounding the Nitrates Derogation

The potential impact of reducing the allowable nitrogen per hectare (N/ha) from 250kg to 220kg, as part of the Nitrates Derogation, was outlined to Minister for Agriculture Charlie McConalogue TD by Lakeland Dairies during a discussion at the Tullamore Show.

Ireland has been granted a derogation to exceed the European standard of 170kg N/ha once stringent criteria for enhancing water quality have been met. Approximately 8,000 farmers currently benefit from this Derogation, allowing a limit of 250kg N/ha.

However, a potential reduction in the maximum livestock manure nitrogen per hectare limit to 220kg N/ha from January 2024 is being considered as part of the ongoing mid-term review of Ireland’s derogation.

Lakeland Dairies’ Chairman, Niall Matthews emphasised the potential “serious consequences” of such a move to the Minister.

During a conversation with Minister McConalogue, he highlighted,

"We were pleased to have the Minister visit our stand at the Tullamore Show. While it was great to see numerous farmers and suppliers at the event, there was a sense of growing concern regarding the uncertainty surrounding the Nitrates Derogation.
 

“Joined by Lakeland Dairies' Head of Food Ingredients, Pat Shiels, and my fellow Board member, Ollie Neville, we clearly outlined the significant impact this could have on our farmers and the regional economy."

Matthews continued,

"Any reduction of the derogation limit from 250kg N/ha to 220kg N/ha would significantly hamper the productivity of many of our farming families. Our farming community is already displaying excellent leadership in enhancing water quality.

“We recognise the paramount importance of not only maintaining but also elevating our water quality standards. Our involvement in the Agricultural Sustainability Support and Advisory Programme (ASSAP) demonstrates our commitment, and we've aided farmers in adopting sustainable practices through the FundEquip scheme."

He further added,

"Extensive efforts have been undertaken to drive sustainability and water quality improvements. Lakeland Dairies will remain at the forefront of championing and spearheading these initiatives. However, substantial changes such as the proposed reduction in the Derogation limit to 220kg N/ha within a few months' time could have serious consequences for Lakeland Dairies farm families."

Matthews concluded by saying,

"We appeal to the Minister and his officials to exert all possible efforts at the European level to safeguard the current Nitrates Derogation for the remainder of its term."

Lakeland Dairies farms are in the top 20% nationally for soil fertility on farms, new analysis shows.

The Lakeland Dairies farms participating in the soil sampling programme surpassed national cross-sector as well as dairy-only enterprises for optimal phosphorus (P), potassium (K), and pH, with optimal fertility 18% higher than the national average.

Some 67% of samples had optimal P levels and 70% had optimal K levels. The pH levels were above the national average by 10% with most of the Lakeland Dairies’ soils sampled having a pH of >6.2.

The farms sampled were from counties Cavan, Monaghan, Donegal, Kildare, Laois and Leitrim and the samples were analysed by FarmEye.

More than 5,000 samples were taken from some 300 farms supplying Lakeland Dairies over the end of 2022 into the start of 2023. Lakeland Dairies has been operating a subsidised soil sampling programme since 2014 with the aim of improving soil fertility across its milk supply catchment area in Ireland. A separate soil sampling programme operates for suppliers in Northern Ireland.

Commenting on the soil sample analysis, General Manager of Lakeland Dairies Member Relations, Eamon Duignan said:

“Firstly, it’s very encouraging to see the level of soil sampling uptake taking place across the Lakeland Dairies catchment area. Secondly, the results are an excellent performance from farmers across the Lakeland Dairies catchment area.

“It shows how tuned in the Lakeland Dairies farm families are to the importance of soil fertility. We have been supporting our farmers on this soil fertility journey for nearly a decade now through a targeted soil sampling and analysis programme. We will continue to support our farmers on this journey.”

Niall McLoughlin, Lakeland Dairies Farm Sustainability Manager said:

“Optimal soil fertility is the foundation stone of healthy soil. Having a healthy soil means we can grow as much grass as possible while working to reduce our use of chemical fertiliser. So, by getting soil fertility levels right, we can cut fertiliser usage which is good for the environment and good for the pocket. Lakeland Dairies farmers are playing a leadership role in helping reduce our carbon emissions while also continuing to produce the highest-quality milk.”

The Milk Quality Awards are recognition of the achievements of Lakeland Dairies' milk suppliers who are committed to quality in all aspects of their milk production.

Winning a milk quality award is a truly excellent achievement. The winners emerged from among 3,200 farm families across 17 counties who produce milk for the 2bn litres Lakeland Dairies milk pool. The awards were presented recently by Minister for Social Protection, Rural and Community Affairs, Heather Humphreys TD, with Lakeland Dairies Chairman Niall Matthews and Group Chief Executive Colin Kelly at a special event held in Cavan.

Speaking at the awards, Minister Heather Humphreys said:

"It's an excellent achievement to be acknowledged by your own co-operative for producing superior quality milk. That kind of quality doesn't just happen overnight. It's an enduring commitment, involving a lifetime's dedication to unmatched standards each time you walk the fields, check on your herd or enter the milking parlour. I express my admiration for Lakeland Dairies' farming families. They form the foundation of an impressive cross-border operation, making a remarkable impact both locally and internationally. I am also very pleased to note that sustainability is a driving force for Lakeland Dairies and a platform for their ongoing progress and success through the production of world-class food."

Lakeland Dairies Chairman, Niall Matthews paid tribute to the award winners:

"As dairy farmers, we produce the 2 billion litres of nutritious milk that serve as the foundation for a very wide range of Lakeland dairy products enjoyed by consumers across the globe. Dairy farming is a profession that spans generations, providing sustenance for families, fuelling rural economies, and playing an essential role in environmental sustainability. We are proud of the very high quality of our milk pool. I extend my congratulations to all of our dedicated dairy farmers for their commendable achievements and their invaluable, ongoing contribution to our farmer-owned dairy co-operative."

Lakeland Dairies Group CEO Colin Kelly said:

"I'm delighted to pay tribute to the accomplishments of our farm families as we acknowledge the winners of our milk quality awards. Excellence and sustainability are at the centre of our operation and these principles inspire the confidence that our customers and consumers have in us. The dedicated milk producers of Lakeland Dairies have consistently met the requirement for quality with unwavering commitment. As the global population grows, there's an increasing reliance on the reliability and integrity of the worldwide food supply chain, from the pastures to the plate. Dairy, as a versatile and nutrient-rich food, holds a key role in addressing this rising demand. Our exceptional milk producers, with their dedication to quality, will undoubtedly remain at the forefront of all these developments."

Milk Quality Award Winners

Pictured below, the awards were presented by Minister Heather Humphreys TD; Lakeland Dairies' Chairman Niall Matthews; Vice-Chairman Keith Agnew and Group Chief Executive Colin Kelly, at a special ceremony held in Cavan.

The Supreme Champions of the Lakeland Dairies Milk Quality Awards are Stephen Cargill (pictured) and son David Cargill, Templepatrick, Ballyclare, Co. Antrim, who claimed the accolade for the exceptionally high quality of milk produced on their farm throughout the past year, among a milk supplier base of over 3,200 family farms. Stephen and David also took home the >1m litre producer category award in Northern Ireland:

In addition to the Supreme Champions, Lakeland Dairies also announced winners in the other categories of the Milk Quality Awards.

 Peter and Enda Duffy, Cornahoe, Ballybay, Co. Monaghan won the >500,000 litre producer category award:

Kieran Duffy and his son Conor, together with farm staff member Colin Shorthall, Ballinahown, Athlone, Co. Westmeath, were the highly commended runners-up in the >500,000 litre producer category:

Seamus McNally and his daughter Julie (Mullarkey), Glaslough, Co. Monaghan were winners of the <500,000 litre producer category of the Lakeland Dairies Milk Quality Awards. Julie, her husband Eamonn and their children Christine and Eddie received the award:

Thomas and Colm Mallon (Colm, pictured) Lislum, Kenagh, Co. Longford were the highly commended runners-up in the <500,000 producer category:

 Killian and Madeline Brennan, Kilcogy Upper, Co. Longford won the Sustainability Award for outstanding commitment to sustainable milk production and environmental and economic sustainability, pictured with their children Chloe, Dara and Ryan:

Laurence Dorian, his nephew Patrick Lynch and Miriam Lynch, Mullins Cross, Dunleer, Co. Louth, were declared winners of the Best New Entrant category in ROI. Lakeland Dairies has welcomed over 400 new milk producers to the co-operative in recent years:

Smyth McCann, Bangor, Co. Down was the highly commended runner-up in the >1m litre producer category of the awards in Northern Ireland, pictured with Jim and Avril McCann and Aoife O'Sullivan:

Derick and Hall Donnell, Ballymagorry, Strabane, Co. Tyrone, won the Northern Ireland <1m litre producer category:

Michael Quinn senior and Michael junior, Mullaghbane, Newry, Co. Down were the highly commended runners-up in the <1m litre producer category:

Gary and Amanda Agnew, Kingstown, Lisnaskea, Co. Fermanagh won the Best New Entrant Category in Northern Ireland:

We congratulate all winners of the Lakeland Dairies Milk Quality Awards.

Pictured announcing 2022 annual results are (L-R) Keith Agnew, Vice-Chairman; Colin Kelly, Group CEO; Peter Sheridan, Group Chief Financial Officer and Niall Matthews, Chairman of Lakeland Dairies.  Picture by Rory Geary.

Lakeland Dairies, the largest cross-border dairy processing co-operative on the island of Ireland, has announced results for 2022, with increased revenues and operating profit, while paying a very competitive milk price to milk producers throughout the year.

Farmer owned Lakeland Dairies collects over 2bn litres of milk from 3,200 farm families across 16 counties in Northern Ireland and the Republic of Ireland. The co-operative has a portfolio of 240 different dairy products made on 8 highly efficient processing sites which it exports to over 100 countries worldwide.

Lakeland Dairies - Group Revenues: €1.9bn.

Lakeland Dairies’ revenues increased by 45% to €1.9bn across its four operating divisions of Food Ingredients, Foodservice, Consumer Foods and Agribusiness, up by €590m on the prior year figure of €1.3bn.

This yielded an operating profit of €32.5m, up by €4.3m (+15%) and EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of €60.2m, which increased by €4.8m.

During the year, Lakeland Dairies distributed €1.1bn in payments to milk supplying farms across 16 counties, spanning both the north and south of the island.

Lakeland Dairies closed the year with a strong balance sheet including Shareholders’ Funds of €273m.

Food Ingredients Division - Revenues: €1.19bn

Food Ingredient revenues increased by 43% to €1.19bn, based on a very strong performance, where Lakeland processed extra milk volumes while meeting consistently high demand across its dairy food ingredients portfolio. This also resulted from ongoing investment in plant optimisation and efficiencies. The co-operative exported record volumes of milk powders and butter during the year, benefiting also from increased market prices.

Foodservice Division - Revenues: €310.9m

Foodservice revenues increased by 39% to €310.9m, up by €87m on the prior year figure of €223.9m. This was achieved in spite of a difficult period for the global foodservice sector with continuing pandemic lockdowns and the war in Ukraine presenting challenges around cost inflation, supply chain disruption and fears of recession. Despite this, with a resumption of traditional service models and consumer behaviour, confidence returned to the sector enabling a more sustainable platform for business growth and development.

Consumer Foods Division - Revenues: €272.9m

Consumer Foods experienced a 60% uplift in revenue to €272.9m, up by €102.7m on the prior year figure of €170.2m. This includes positive organic growth across Lakeland Dairies’ consumer portfolio of products including new listings and price adjustments which were necessary to address key inflationary pressures.

Agribusiness Division (Lakeland Agri) - Revenues: €125.3m

Lakeland Agri increased revenues by 45% to €125.3m based on a combination of strong operational performance and solid demand. 2022 was challenging given overall market volatility, including supply chain disruption due to the war in Ukraine and unprecedented increases in the cost of energy. While raw material costs increased significantly and this influenced animal feed prices, Lakeland Agri sought to minimise increases for all customers.

Lakeland Dairies Group Chief Executive, Colin Kelly said:

“These positive results are based on a strong, progressive and resilient performance, underpinned by the overall quality of our milk producers, people and operations, notwithstanding a deeply competitive and uncertain global market environment. I warmly acknowledge the excellent contribution of my predecessor, Michael Hanley, and the management team, to the success of Lakeland Dairies, as reflected in our 2022 results.”

“Lakeland Dairies’ 3,200 farm families produced over 2 billion litres of top-quality milk, which was directed towards value-added product categories and market segments, generating optimal returns. The impact of geopolitical problems and continuing economic uncertainty were seen globally with serious inflationary effects across every cost base, at farm and organisational level. Nevertheless, the dairy markets yielded strong returns and Lakeland Dairies was able to pay a very competitive milk price to our milk producers.

“Market conditions for 2023 are proving much tougher for our suppliers and will remain contingent on global factors including the overall balance of supply and demand, across our extensive product portfolio, while economic uncertainty remains a serious concern, with the potential for continued market volatility.

“In the years ahead, we will seek to optimise the strengths that Lakeland Dairies has established to date while also continuing developments on an ever more sustainable platform. Global demand for dairy will remain strong in the years ahead. With a focus on innovation and efficiency, Lakeland Dairies is in a competitive position to take advantage of future market buoyancy and we are committed to paying as high a milk price as possible. Our ultimate objective is to ensure long-term market success for our milk producers, and for our valued customers, all of whom remain at the forefront of everything we do.”

Lakeland Dairies’ Chairman, Niall Matthews said:

“2022 was an exceptional year with strong market returns, increased revenues and high milk prices. This was welcomed by milk producers in the context of very high input costs, rampant inflation and an overall cost-of-living crisis in economies across the world.

“The €1.1bn that we distributed in milk price payments to our farm families has a continuously positive multiplier effect where our dairy farmers create economic, social, and environmental benefits as essential participants in their rural communities.

“Lakeland Dairies is a dynamic dairy co-operative with excellent facilities, value-added dairy products and substantial scale and efficiency. We have the capacity to invest where required in future initiatives for the overall development of the business. Our commitment to dairy farmers is unwavering, and we have confidence in our capability to achieve further significant progress and success, notwithstanding all current pressures.”

Download Business Review 2022

Information:

Tim Kinsella, MKC Communications. 00 353 87 813 7512 / tim@mkc.ie

Lakeland Dairies has a heritage of success spanning over 125 years. The modern-day Lakeland Dairies Group was formed in 1990 through the merger of the then Killeshandra and Lough Egish Co-operatives, established in 1896 and 1902 respectively. Since then, through a process of organic and acquisitive growth, the co-operative has created a dynamic business as one of Ireland's top dairy processors.

Lakeland Dairies has a strategic focus on the creation of value and is intent on delivering this through the performance of the business, underpinned by a culture of collaboration which enables our skilled committed people working together to deliver results through research, innovation and an unparalleled commitment to quality, flexibility and reliability across all operations.

In tandem with this, throughout the organisation and its operations, and across all of the practices and processes that it deploys, Lakeland Dairies has maximum respect for the protection and sustainability of the environment, engagement with our people and a commitment to their wellbeing and embracing their diversity.

This report reflects our obligations as an Irish employer based on the Gender Pay Gap Information Act 2021 was which was signed into law in July 2021. This Act amends the Employment Equality Acts 1998 to 2015 in the form of the Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) Regulations 2022 (the ‘Regulations’). For 2022 the Regulations have placed new reporting and publication obligations on employers with 250 or more employees.

A gender pay gap is the difference in the pay and bonuses of male and female employees across an organisation. The gender pay gap is different to equal pay which means paying women and men the same pay for performing the same, similar or work of equal value. This report focuses only on gender pay gap reporting, as distinct from equal pay. The gender pay gap calculations do not account for differences in pay due to the nature of the role, grade or years of service. All of these variables impact the results.

Read report here

Pictured L-R Colin Kelly, Group CEO Designate, Niall Matthews, Chairman and Keith Agnew, Vice-Chairman, Lakeland Dairies.

The Board of Lakeland Dairies has announced Colin Kelly as Group CEO Designate.  He is currently Managing Director for Trading and Member Relations at Ornua. 

Mr. Kelly will take up his appointment in January 2023 succeeding Group CEO Michael Hanley who earlier this year announced that he will retire in December.

Colin Kelly will join Lakeland Dairies having worked at Ornua since 2011, where he has held a range of senior finance and general management positions.

Prior to his current role at Ornua, he served as Head of Strategy Planning and Risk Management and before this as President and also as Chief Financial Officer of Ornua Ingredients North America. Before joining Ornua, he was a Senior Auditor with Deloitte. A native of Lusmagh, Co. Offaly, he is an Accounting and Finance graduate of University of Limerick and is a fellow of the Institute of Chartered Accountants in Ireland.

Niall Matthews, Chairman, Lakeland Dairies said,

“Colin’s knowledge and experience of the Irish and international dairy industry will be of significant benefit to Lakeland Dairies where he will lead the ongoing future progress, growth and success of our co-operative in the interests of our 3,200 farm families, our staff and our global customer base.”

Colin Kelly, CEO Designate of Lakeland Dairies said,

“I am privileged to join Lakeland Dairies in the position of CEO. I recognise the enormity of the role and the proud history of the organisation. I am excited by the challenge and look forward, in conjunction with the Board, to leading the business to continued and sustained success in the years to come.

“I particularly look forward to working with the excellent leadership team, management, people and farm families of Lakeland Dairies and to continuing the great work that has brought the co-operative to its internationally recognised position as a dairy industry leader.”

Farmer owned Lakeland Dairies collects 2bn litres of milk from 3,200 farm families across 16 counties on a cross border basis. The co-operativemakes a wide range of dairy food ingredients, foodservice and consumerproducts, which it exports to over 80 countries worldwide, in addition to comprehensive agribusiness operations.

Read more Lakeland News

Pictured (L/R): Michael Hanley, CEO Lakeland Dairies, Andrea & Alan Nicholson, Agriculture Minister Charlie McConalogue TD, William Nicholson, Niall Matthews (Chairman, Lakeland Dairies), David Gunn, Easyfix (Sponsor) and Mark Gibson, Farm Staff Member.

A dairy farming family in Co. Monaghan has been announced as Supreme Champions of the Lakeland Dairies Milk Quality Awards, presented by Minister for Agriculture, Food and the Marine, Charlie McConalogue TD. William and Alan Nicholson, Drumacrib, Castleblayney, Co. Monaghan claimed the accolade for the exceptionally high quality of milk produced on their farm throughout the past year, from a milk supply base of over 3,200 dairy farmers producing 2bn litres of milk for Lakeland Dairies.  The Nicholsons also took home the >500,000 litre producer category award in the Republic of Ireland. 

A dairy farming family in Co. Monaghan has been announced as Supreme Champions of the Lakeland Dairies Milk Quality Awards.

Farm families in Monaghan, Westmeath, Cavan, Meath, Offaly, Fermanagh, Down, Tyrone, Armagh and Antrim won awards for the highest quality milk.

The Milk Quality Awards are public recognition of the achievements of Lakeland Dairies’ milk suppliers who are committed to quality in all aspects of their milk production.

Winning a milk quality award is a truly excellent achievement. The winners emerged from among 3,200 farm families across 16 counties who produce milk for the 2bn litres Lakeland Dairies milk pool.

The awards were presented by Minister for Agriculture, Food and the Marine, Charlie McConalogue TD, with Lakeland Dairies Chairman Niall Matthews and Group Chief Executive Michael Hanley at a special event on Thursday 23rd June.

Speaking at the awards, Minister Charlie McConalogue said:

“To win an award where you are recognised by your own co-op for having produced a top-quality product is a truly remarkable achievement. Producing high-quality milk is not something that is done overnight. It is a lifetime’s achievement and the result of a commitment to excellence every time you step into the parlour and every breeding decision you make.

“I commend all the Lakeland Dairies farm families who are the bedrock of a hugely impressive cross-border operation. The co-op is a shining beacon of sustainably exporting world-class products across the globe.  Sustainability is a key priority for the Lakeland Dairies farm families and the entire co-op and I pay tribute to this drive for continuous improvement. Both I and the rest of the Government will back this sustainability agenda while continuing to support the production of world-class food.”

Lakeland Dairies Supreme Milk Quality Champions

The Supreme Champions of the Lakeland Dairies Milk Quality Awards are William and Alan Nicholson, Drumacrib, Castleblayney, Co. Monaghan. They claimed the accolade for the exceptionally high quality of milk produced on their farm throughout the past year.

Pictured (L/R): Andrea & Alan Nicholson, William Nicholson and Mark Gibson.

In addition to the Supreme Champions, Lakeland Dairies also announced winners in the other categories of the Milk Quality Awards.

>500,000 Litre Category Winners

Winners: the Nicholsons also took home the >500,000 litre producer category award in the Republic of Ireland.

Highly commended: runners-up in the >500,000 litre producer category were Richard and Joan Greene, Killeen, Multyfarnham, Co. Westmeath.

Pictured (L/R): Michael Hanley, CEO Lakeland Dairies, Richard & Joan Greene and Niall Matthews (Chairman, Lakeland Dairies).

<500,000 Litre Category Winners

Winner: Sean Higgins, Trim, Co. Meath, was the winner of the <500,000 litre producer category.

Highly Commended: Micheal Smith, Lishenry, Ballyjamesduff, Co. Cavan was the runner-up in the <500,000 producer category.

Pictured (L/R): Michael Hanley (CEO Lakeland Dairies), Peter, Mary, Sean & John Higgins (Winners) and Niall Matthews (Chairman, Lakeland Dairies).

Pictured (L/R): Michael Hanley (CEO Lakeland Dairies), Oisin, Ann Marie, Michael & Vanessa Smith (Highly Commended) and Niall Matthews (Chairman, Lakeland Dairies).

Sustainability Award Winners

Winners: Rosemary and David Moran, Glasson, Athlone, Co. Westmeath, won the Lakeland Dairies Sustainability Award for their outstanding commitment to sustainable milk production and environmental and economic sustainability.

Pictured (L/R): Michael Hanley (CEO Lakeland Dairies), Rosemary Moran, baby Sawyer, David & Siobhan Moran (Winners) and Niall Matthews (Chairman, Lakeland Dairies).

Best New Entrants

Lakeland Dairies has welcomed over 350 new milk producers to the co-operative in recent years.

Winners (ROI): Dairy farmers PJ, Peter Jnr. and Donal Grogan, Leamore, Tullamore, Co. Offaly, were declared winners of the Republic of Ireland Best New Entrant Category.

Winners (NI): Kevin and John McDonnell, Brookeboro, Co. Fermanagh won the Northern Ireland Best New Entrant Category, for their high quality of milk supplied to Lakeland Dairies.

Pictured (L/R): Michael Hanley (CEO Lakeland Dairies),Peter Jnr & Donal Grogan, Emer Molloy and Niall Matthews (Chairman, Lakeland Dairies).

Pictured (L/R): Michael Hanley, CEO Lakeland Dairies, Kevin McDonnell, Keith Agnew (Vice chair, Lakeland Dairies) and Niall Matthews (Chairman, Lakeland Dairies)

Northern Ireland

>1m Litre Category Winners

Winners: John Morrow and Scott Davidson, Gilnahirk, Co. Down, won the >1m litre milk producer category in Northern Ireland.

Highly Commended: Fred and David Liggett, Stewartstown, Dungannon, Co. Tyrone were runners-up in the >1m litre producer category of the awards in Northern Ireland.

Pictured (L/R): Michael Hanley (CEO Lakeland Dairies), Helen & Scott Davidson, Keith Agnew (Vice chair, Lakeland Dairies) and Niall Matthews (Chairman, Lakeland Dairies).

Pictured (L/R): Michael Hanley (CEO Lakeland Dairies) Heather & Fred Ligget, Keith Agnew (Vice chair, Lakeland Dairies) and Niall Matthews (Chairman, Lakeland Dairies)

<1m Litre Category Winners

Winners: William and Bertie McCrum, Markethill, Co. Armagh won the <1m litre producer category in Northern Ireland.

Highly Commended: Harry, Lex and Alastair Campbell, Ballymoney, Co. Antrim were runners-up in the <1m litre producer category in Northern Ireland.

Pictured (L/R): Michael Hanley (CEO Lakeland Dairies), Bertie & Allie McCrums, Keith Agnew (Vice chair, Lakeland Dairies) and Niall Matthews (Chairman, Lakeland Dairies).

Pictured (L/R): Michael Hanley (CEO Lakeland Dairies), Lex Campbell, Niall Matthews (Chairman, Lakeland Dairies) and Keith Agnew (Vice chair, Lakeland Dairies)

Lakeland Dairies Chairman, Niall Matthews paid tribute to the award winners:

“Dairy farmers produce the 2 billion litres of wholesome milk that we use to create a diverse range of dairy products for our customers worldwide. Dairy farming crosses the generations, creating a livelihood for families while contributing to rural economic development and environmental sustainability. We are proud of the high quality of our milk pool as exemplified by the winners of the Lakeland Dairies milk quality awards. I congratulate all of our dairy farmers for their achievements and for their excellent ongoing contribution to our farmer owned dairy co-operative.”

Lakeland Dairies Group CEO Michael Hanley said:

“The population of the world relies on the quality and integrity of the global food supply chain from farm to fork. This demand continues to grow and dairy provides the solution. Quality and sustainability are the building blocks of our entire businessand this underpins the trust that our customers and consumers place in us. The milk producers of Lakeland Dairies have always met this responsibility with great dedication. I’m delighted to pay tribute to their achievements as we recognise our milk quality award winners.”

Michael Hanley added,

“Despite higher costs, those farmers who have continued to spread fertiliser and to feed cows as normal, are being handsomely and profitably rewarded with the record high milk prices throughout this year.”

All pictures by Rory Geary

Lakeland Dairies has adjusted the milk price it pays on existing fixed milk contracts with farmer suppliers.

This is to help alleviate the prolonged on-farm cost squeeze for farmers engaged in these contracts, as severe inflationary pressures on feed and fertiliser continue to bite.

In the Republic of Ireland, all fixed milk volumes will receive an 8 c/litre supplementary payment from April 2022 - December 2022 inclusive.

In Northern Ireland the corresponding payment will be 7 p/litre on all milk in fixed price schemes for the same months.

Lakeland Dairies said the supplementary initiative is underpinned by market support from its customers and is intended to assist in currently unprecedented market conditions.

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The Chief Executive of Lakeland Dairies, Michael Hanley has announced his decision to retire in December 2022.

This follows a distinguished career of 36 years with the co-operative including the past 16 years as CEO where he has led the transformation of Lakeland Dairies to become the second largest dairy processing co-operative on the island of Ireland, with annual revenues of €1.3bn.

Michael Hanley said:

“It’s an honour and privilege for me to lead this wonderful co-operative business, together with the Board of Directors, my management team, and all of the great people in Lakeland Dairies, making an essential contribution to farm families and the dairy industry in the northern half of the island of Ireland. I look forward to driving further progress throughout the current year.

“Personally it’s the right time for me to make this decision, following on from the record annual financial results reported for 2021. The Lakeland business is in excellent shape to pursue further growth and development, with the financial strength, the necessary resources and a highly experienced leadership team in place to continue the great progress that has been achieved collectively by all of us to date.

“I’ve decided to step down in December and I’ll look forward to much more time with family and friends in due course.  I say a heartfelt thank-you to everyone associated with Lakeland Dairies for the opportunities presented to me throughout my career and during which I am proud to have served as Chief Executive of such an excellent co-operative organisation.”

Niall Matthews, Chairman of Lakeland Dairies said:

“Michael Hanley’s leadership and contribution to Lakeland Dairies is exceptional. His instinctive understanding of dairy farming and the dairy industry, together with his personal commitment to the wellbeing, and success of our sector, is outstanding and we pay tribute to him for this.

“We are sincerely grateful to Michael for the personally driven commitment and energy that he has brought to every aspect of his work throughout his career to date. Our Board and entire co-operative membership as one, wish him, his wife Valerie and his family, every happiness in the future. In the meantime, I look forward to his continuing contribution and support and we will also advance the process to identify a successor in the months ahead.”

Michael Hanley has served as Group CEO of Lakeland Dairies since 2006. In that time, he has led the transformation of the Lakeland business through a range of strategic development programmes and a series of mergers and acquisitions creating efficiency, major economies of scale and consolidation of the dairy industry across the northern half of the island.

A highly experienced dairy industry figure, Group CEO Michael Hanley previously held various senior management positions with Lakeland Dairies since its formation in 1990, including deputy chief executive, general manager of Northern Ireland operations, general manager of dairy operations and manager of member relations.

As Member Relations manager he spearheaded the original 1990 campaign that saw the merger of Killeshandra and Lough Egish Co-operatives to form Lakeland Dairies.

The co-operative went on in successive years to acquire and integrate various businesses leading towards the largest ever dairy co-op merger in Ireland in 2019 – the combination of Lakeland Dairies and Lacpatrick Dairies.

Over the past decade, Lakeland has invested over €200m in new facilities and technologies, increasing milk supplies and processing capacity to a record level of over 2 billion litres.

Lakeland Dairies recently reported a 20% increase in revenues to a record level of €1.3bn for 2021. Operating profit of €28.2m increased by 8%.  EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) has also continued its upward trajectory, increasing by 5% to €55.4m.

From Strokestown, Co. Roscommon, Michael Hanley is originally from a farming background and is an Agricultural Science graduate of University College Dublin.  He is also Chairman of County Cavan Enterprise Fund.

Lakeland Dairies reports uplift in revenues for 2021.  Pictured (L-R), Michael Hanley, Group Chief Executive; Niall Matthews, Chairman; Keith Agnew, Vice-Chairman; Peter Sheridan, Group Chief Financial Officer, Lakeland Dairies.

Lakeland Dairies, the largest cross-border dairy processing co-operative on the island of Ireland, has announced results for 2021, with increased revenues and operating profit, while paying a competitive milk price to milk producers throughout the year.

Farmer owned Lakeland Dairies collects 2bn litres of milk from 3,200 farm families across 16 counties in Northern Ireland and the Republic of Ireland. The co-operative has a portfolio of 240 different dairy products made on 8 highly efficient processing sites which it exports to over 80 countries worldwide.

Lakeland Dairies Group Revenues: €1.3bn.

Lakeland Dairies’ revenues increased by 20% to €1.3bn across its four operating divisions of Food Ingredients, Foodservice, Consumer Foods and Agribusiness, up by €217.7m on the prior year figure of €1.1bn.

This yielded an operating profit of €28.2m, up by €2.1m (+8%) and EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of €55.4m, which increased by €4.9m.

Lakeland Dairies closed the year with a strong balance sheet including Shareholders’ Funds of €230.9m.

Food Ingredients Division Revenues: €831.5m

Food Ingredient revenues increased by 20% to €831.5m, based on consistently strong demand for the co-operative’s functional and enriched powders, proteins and dairy fats throughout the year.  Lakeland Dairies produced over 280,000 tonnes of milk powders and butter in 2021, representing a 12% increase in volume shipments.

Foodservice Division Revenues: €223.9m

Foodservice revenues increased by 23% to €223.9m, up by €42.2m on the prior year figure of €181.7m, which was robust considering that global foodservice markets continued to suffer from volatility and disruption due to the pandemic throughout 2021.

Consumer Foods Division Revenues: €170.2m

Consumer Foods experienced an uplift in revenue, increasing to €170.2m, up by €24.3m (+16%) on the prior year figure of €145.9m, including organic growth and increased uptake of dairy by consumers in the retail grocery sector in 2021.

Agribusiness Division (Lakeland Agri) Revenues: €86.5m

Lakeland Agri increased revenues by 14% to €86.5m for the year, based on a strong performance with feed sales volumes of 218,000 tonnes and fertiliser sales increasing by 19% over the previous year.

Lakeland Dairies Group Chief Executive Michael Hanley said the results reflect prudent management in the context of an intensely competitive and increasingly volatile trading environment:

The financial results and accounts for the year are both prudent and satisfactory. This is particularly so in the context of an intensely competitive trading environment, when the achievement and maintenance of strength, sustainability and resilience have never been more important for globally focused businesses.

This enabled Lakeland to pay a competitive milk price, also reflective of overall market conditions, throughout the year.

The world needs high quality food. This demand is growing and dairy provides the solution. We are therefore concentrating on our long-term global contribution and value-growth through the strength of our market presence and the robust quality of our supply chain. We will continue to innovate in everything we do to ensure the future sustainability and success of our business in the interests of the milk producers and customers who we serve.

We are focused on a sustainable future and the creation of further value for our dairy farmers. We expect relatively stable dairy market conditions through 2022 albeit there are significant challenges in our operating environment, including inflationary pressure on all costs, as economic uncertainty in light of the pandemic and geopolitical issues persist.

Lakeland Dairies’ Chairman, Niall Matthews said:

We operate in a complex global environment and marketplace where the pace of our innovation, and our operational and business performance, must constantly adapt to meet a very wide range of trends and imperatives for the short, medium and longer terms.

The 2bn litres of milk produced by our dairy farmers is manufactured into the highest quality, natural and wholesome dairy products, creating long-term value for our dairy farmers and our customers throughout the world. The economies of scale we have achieved and the robust performance of our business will continue to support our progress, building further on our strengths as a large scale, farmer owned dairy co-operative.

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Lakeland Dairies has announced that Niall Matthews (pictured on left above) was returned as Chair of the co-operative at its Board meeting today. Board Member Keith Agnew has been elected Vice-Chair of the Co-operative.

Mr. Matthews was first elected to his role as Chair in February 2021. He farms at Tully, Co. Louth, in partnership with his wife Juana, with their son and two daughters.

Mr. Agnew is a dairy farmer in Newry, Co. Down, where he farms a Holstein-Friesian herd in partnership with his wife Ruth and three sons.

Niall Matthews, Chair of Lakeland Dairies, said,

"I look forward to working with my colleague Keith and all Board members as we continue the strong progress of Lakeland Dairies. We are grateful to outgoing Vice-Chairs Alan McCay and Andrew McHugh, both of whom served as vice-chairs under the interim rules of the Society, following from the successful Lakeland and Lacpatrick merger completion and consequent Board reconfiguration. Both Alan and Andrew continue on the Board and we thank them for their contribution and commitment."

Lakeland Dairies processes 2 bn litres of milk annually into a wide range of high quality dairy food ingredients, foodservice and consumer products, collecting milk from over 3,200 family farms across 16 counties north and south. The co-operative has 8 major processing facilities and exports over 240 products to 80 countries worldwide.

The Board of Lakeland Dairies has today announced a new payment system for milk supplies in Northern Ireland that will encourage suppliers to produce milk with higher protein and butterfat content.

The new system offers all suppliers an equal opportunity to benefit from enhanced payments for increased constituents over current levels.

In the first instance it will ensure stability and fairness for all Lakeland Dairies milk suppliers in Northern Ireland, as it will not impact any supplier’s base payments going forward, while enabling those who wish to focus on increasing milk solids to receive additional payments in line with the future increased levels of protein and butterfat they are able to supply. 

Each milk supplier will be able to choose a base year from either of 2018, 2019 or 2020, as an average benchmark, from which milk supplies in January 2022 and onwards will then be priced on both a base level and also with regard to subsequently increased milk solids, for additional payments.   

• After each Northern Ireland supplier selects a preferred benchmark year, they will be allocated a monthly milk constituent base figure, for each of the 12 months of that year. The actual milk supplied from January 2022 onwards will then be paid relative to this base figure for constituents.

For all new milk solids produced by any supplier above their chosen base constituents level, an enhanced payment will be paid for each new unit of butterfat and protein supplied.

• The enhanced payments per unit of constituents will be 0.029 pence per litre for every 0.01% of extra fat and 0.056 pence per litre for every 0.01% of extra  protein produced.

All other existing milk payment elements remain as they are currently.

Lakeland Dairies emphasised that the new system will not impact negatively on any supplier’s current payments and does not require the existing payment base to be increased to create a payment fund.

The enhanced milk payment system will be funded by the extra revenue generated from the extra fat and protein sold in the dairy markets.

Lakeland Dairies will be contacting milk suppliers directly with information on the new system.

Niall Matthews, Chair of Lakeland Dairies said, “As a farmer owned dairy co-operative, Lakeland Dairies’ consistent policy is at all times to pay our milk suppliers the highest possible milk price in line with market conditions. The feedback we have received from our milk suppliers, given the existing range of milk solids currently supplied, is that they would generally favour a system of this type.  This will incentivise and reward the production of extra solids, while ensuring that the highest possible base price will continue to be paid to all milk suppliers in line with market conditions. This is a positive development and we are pleased to introduce this new system for our milk producers from January 2022 onwards.”

Following from the recent completion of Board elections Lakeland Dairies has announced the Board of the Co-operative, taking effect on 1st November 2021. 

The elections follow from the decision of members at an SGM last April approving changes to the co-operative’s governance structure, including a reduction in the number of elected Board members of the co-operative, from 22 to 13 members.

This follows from the merger of Lakeland Dairies and LacPatrick Dairies in 2019, when it was agreed to review the rules of the new merged Society once the merger was completed.  Electoral areas were subsequently revised to establish a 13 member Board (from 22), with an option to also co-opt up to 3 further directors. 

The 13 member Board has now been established following elections in 8 electoral areas, and further elections will also be held in Autumn 2022 covering a remaining 5 electoral areas, completing the adjustment process.

The Board membership is as follows:  Niall Matthews (Chair), Andrew McHugh (Vice-Chair), Alan McCay (Vice-Chair),  Keith Agnew, Sean Connolly, John Joseph Cooney, Michael Dobson, JJ Lavelle, Anthony Leddy, Christy McKenna, Oliver Neville, Alan Thompson, Alex Walker.  In May 2021, Liam Larkin was co-opted to the Board as an independent non-executive director and continues in this capacity.

Niall Matthews, Chair of Lakeland Dairies said,

“I welcome the establishment of our new Board and look forward to working with each member to advance the best interests of the co-operative for all our members and milk producers in the years ahead.  On behalf of the Board and members of the co-operative, I thank all retiring Board members for their commitment, dedication and service. Based on our democratic and leadership structures, Lakeland Dairies will continue our strong progress into the future.”

Image: Eugene and Deirdre Fitzpatrick, with children Ruth and Conor, Lisryan, Granard, Co. Longford, Supreme Championsof the Lakeland Dairies Milk Quality Awards (ROI), for the exceptionally high quality of milk they have produced on their farm throughout the past year. They were presented with the award on their farm by Lakeland Dairies’ Chairman, Niall Matthews (left) and Group CEO Michael Hanley.

Farm families in Co. Longford and Co. Tyrone have been announced as Supreme Champions of the Lakeland Dairies Milk Quality Awards.

The Milk Quality Awards publicly recognise the achievements of Lakeland Dairies milk suppliers who are committed to quality in all aspects of their milk production.

Winning a milk quality award is a truly excellent achievement. The winners emerged from among 3,200 farm families across 16 counties who produce milk for the 1.9bn litres Lakeland Dairies milk pool.

The Supreme Champions of the awards are Eugene & Deirdre Fitzpatrick Lisryan, Granard, Co. Longford, and Cyril Gibson, Beragh, Omagh, Co. Tyrone, for the exceptionally high quality of milk they have produced on their farms throughout the past year.

The Fitzpatricks also took home the >500,000 litre producer category award in the Republic of Ireland, while the Gibsons are winners in the >1m litre producer category in Northern Ireland.

Image: Cyril and Jennifer Gibson, with children Joel and Jessica, Beragh, Omagh, Co. Tyrone, Northern Ireland Supreme Champions of the Lakeland Dairies Milk Quality Awards, for the exceptionally high quality of milk they have produced on their farm throughout the past year. They were presented with the award on their farm by Lakeland Dairies’ Chairman, Niall Matthews (left) and Group CEO Michael Hanley.

Winners

Lakeland Dairies has also announced the winners in the other categories of the Milk Quality Awards.

In the Republic of Ireland, Patrick, Sheila & James Connolly, Ballymahon, Longwood, Co Meath are winners of the <500,000 litre producer category.

In Northern Ireland, Robert & Mark Bristow, Rasharkin, Co. Antrim won the <1m litre producer category.

New Entrant to Dairying Winners

Recognising the achievements of new entrants to dairying, where Lakeland has welcomed over 350 new milk producers to the co-operative in recent years, Sean and Paul Murtagh, Rathconrath, Mullingar, Co. Westmeath were declared winnersof the Republic of Ireland new entrant category while Bernard & Rory McKeever, Kilmore, Co. Armagh, won the Northern Ireland new entrant category, for the high quality of their milk supplied to Lakeland Dairies.

Lakeland Dairies Chair Niall Matthews paid tribute to the award winners:

“Dairy farmers are the primary producers of the 1.9 billion litres of milk that we use as the essential raw material to create the wide variety of dairy products for our customers worldwide. It requires insight and expertise passed from generation to generation, combined with knowledge and application of the best modern day practices in animal husbandry, grassland management, environmental sustainability and overall farm management. The pasture based milk production model yields a food product that is natural, wholesome and sustainable in all of its qualities. The past year has been very challenging for everyone in society and across all of our local communities. We are very proud of the high quality of our milk pool as exemplified by the winners of the Lakeland Dairies milk quality awards and I congratulate all our dairy farmers for their achievements and for their excellent ongoing contribution to our farmer owned dairy co-operative.”

Lakeland Dairies Group CEO Michael Hanley said:

“The population of the world, individuals, families and entire nations rely on the quality and integrity of the global food supply chain from farm to fork. This has never more been the case than throughout the course of the pandemic where maintaining the resilience of domestic and international food supply channels has helped to provide reassurance and stability worldwide. The milk producers of Lakeland Dairies have always met this responsibility with great commitment and dedication and I am delighted to pay tribute to their achievements as we recognise our milk quality award winners, north and south. Quality and sustainability are the building blocks of our entire business and this underpins the trust that our customers and consumers place in us. The basis of our ongoing progress and success is found first and foremost within the farm gate, among our 3,200 farm families, and onwards through the facilities we operate, supplying some 240 products to 80 countries worldwide. I warmly congratulate our milk quality award winners, and I thank all of our milk producers, for the high quality of milk that they supply to us for processing.”  

The Chair, Board, Chief Executive, Management and Staff of Lakeland Dairies are deeply saddened by the passing away of our highly esteemed and much loved colleague and friend, Dermot McGreal (General Manager, Consumer Foods Division).

Dermot became General Manager of the Lakeland Dairies Consumer Foods Division following from the merger with LacPatrick Dairies in 2019 and prior to this he enjoyed a long and very successful career inour industry for five decades.

Dermot was a man of immense integrity and principle. He was as committed to running a successful business as he was to ensuring that colleagues and friends were always valued and included. His patience, keen eye for detail and empathy made him one of the best business people in the Irish food industry for nearly half a century. 

His skill and talent as a businessman were only surpassed by his qualities as a human being. Dermot only saw the best in people because he brought the best out of people. 

Dermot is survived by his loving wife Pauline, daughters Louise, Edel, Sarah Jane, Shauna and son Dermot junior and he was predeceased by his beloved daughter Paula. 

All of us at Lakeland Dairies extend our deepest sympathy and condolences to Pauline and family.

May our dear friend and colleague rest in peace.

The Board of Directors of Lakeland Dairies Co-operative Society Ltd. has co-opted Liam Larkin to the Board of the co-operative.

A highly experienced food industry professional, Mr. Larkin will serve as an independent non-executive director on the Board.

Mr. Larkin brings over 40 years of Irish and global corporate experience and expertise gained from time spent in Executive Director and senior management roles across a wide range of operations and subsidiaries in Origin Enterprises plc and its predecessor IAWS Group plc.   

Announcing the appointment, Chairman of Lakeland Dairies Niall Matthews said,

“Liam brings extensive agrifood and agribusiness sector experience, gained over a very accomplished career to date, and this acumen will be very useful to the Board and management of Lakeland Dairies as we plan our future strategy and growth.”

Liam Larkin said,

“Lakeland Dairies is a highly progressive and competitive dairy processing co-operative. I look forward to working with the Board and management to support Lakeland Dairies’ continuing growth and development where the co-operative is well positioned to meet global challenges and opportunities for the future.”

 

Farmer owned Lakeland Dairies collects 1.9bn litres of milk from 3,200 farm families across 16 counties in Northern Ireland and the Republic of Ireland. The co-operative has a portfolio of 240 different dairy products made on 8 processing sites which it exports to over 80 countries worldwide.

A Special General Meeting (SGM) of Lakeland Dairies has approved changes to its governance structure, including a reduction in the number of elected Board members of the co-operative.

At the time of the merger of Lakeland Dairies and LacPatrick Dairies in 2019, it was agreed to review the rules of the new merged Society once the merger was completed. The merger received the resounding approval of the members of both co-operatives at that time.

The Board of the new Lakeland Dairies Co-operative Society went on to establish a Governance Sub-Committee to carry out a review of shareholder representation and governance arrangements in the new Society. This was chaired independently by Teddy Cashman, with six members of the current Board.

Following an extensive consultation process and deliberation over several months, the sub-committee reported to the Board with recommendations on new governance structures which the Board approved unanimously and recommended to members at the SGM.

In summary, following the approval of members at the SGM, the Society will adopt a new Rule book including the following modifications:

- The current 19 Electoral Areas will be replaced with 13 new Electoral Areas, based on milk supplier Members, with a broadly equal number of milk supplier members in each electoral area in the Republic of Ireland and each electoral area in Northern Ireland. Each Electoral Area will be represented by one Board member, with 8 Electoral Areas in the Republic of Ireland and 5 in Northern Ireland.

- Following from the merger in 2019, the current Board has 22 elected members and this will now be reduced to 13 (one per electoral area) by November this year, with the option to also co-opt up to 3 directors.

- To avoid wholesale changes to the important role of the Board, e.g., by running all 13 elections at once, the elections will instead be held on a phased basis. Eight of the new electoral areas currently with more than 1 Board member will hold elections in September and October this year and the remaining 5 new electoral areas will hold elections in September and October 2022.

Niall Matthews, Chairman of Lakeland Dairies said,

The review process that has now been concluded through our SGM will enhance our corporate governance and will ensure that our democratic and leadership structures will continue to serve the best interests of all our members. I believe that the changes voted for by our members will be very beneficial for our co-operative into the future. We will be keeping members fully updated on the electoral processes which will take place in due course.

Lakeland Dairies, the largest cross-border dairy processing co-operative on the island of Ireland, has announced its results for the year ended 26th December 2020, with increased revenues and operating profit, while paying a competitive milk price to milk producers throughout the year.

Farmer owned Lakeland Dairies collects 1.9bn litres of milk from 3,200 farm families across 16 counties in Northern Ireland and the Republic of Ireland. The co-operative has a portfolio of 240 different dairy products made on eight processing sites which it exports to over 80 countries worldwide.

Lakeland Dairies Group Revenues: €1.09bn.

Lakeland Dairies achieved record revenues which increased by over 5.7% to €1.09bn across its four operating divisions of Food Ingredients, Foodservice, Consumer Foods and Agribusiness, up by €59.3m on the prior year figure of €1.03bn.

This yielded an operating profit of €26m, up by €5.6m (+27%) and EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of €50.5m, which increased by €7.6m.

Lakeland Dairies closed the year with a further strengthened balance sheet including Shareholders’ Funds of €207.7m.

Food Ingredients Division Revenues: €691.0m

Food Ingredient revenues increased by 18% to €691.0m, based on consistently strong demand for the co-operative’s functional and enriched powders, proteins and dairy fats throughout the year.  Lakeland Dairies produced over 250,000 tonnes of powders and butter in 2020.

Foodservice Division Revenues: €181.7m

Foodservice revenues of €181.7m came in higher than expected in a very challenging year, albeit retracting by 24% on the prior year, given the exceptionally difficult market conditions experienced by this sector as a result of the pandemic.

Consumer Foods Division Revenues: €145.9m

Consumer Foods had a buoyant year in line with an uplift in overall grocery market growth levels, with revenues of €145.9m

Agribusiness Division (Lakeland Agri) Revenues: €75.8m

Lakeland Agri increased revenues by 4.7% to €75.8m for the year, based on a strong performance with feed sales volumes of 220,000 tonnes (an increase of just over 4.7%) and fertiliser sales steady at 27,000 tonnes, similar to the prior year.

Commentary

Lakeland Dairies Group Chief Executive Michael Hanley said the results are very positive given the global events of 2020.

Notwithstanding the major operational, logistical and commercial constraints of the pandemic, both domestically and globally, we continued to make strong progress across all of our operations and this has yielded excellent results.  We paid a competitive milk price throughout the year in line with market conditions.

Aligned to our business achievements, we further consolidated the benefits of the Lakeland LacPatrick merger of 2019, achieving ongoing organisational, operational and administrative efficiencies and contributing to overall economies of scale, value creation and long term sustainability for our 3,200 milk producers, north and south.

This robust performance enabled us to pay a competitive milk price in spite of serious market uncertainties that existed throughout the year. Market returns depend on the dynamic of milk supply and demand that exists between countries, geographies and continents, also including seasonality and ‘force majeure’ issues such as the pandemic.

We expect relatively stable dairy market conditions through 2021 albeit there are still significant challenges in our operating environment as we await the anticipated beneficial effect of worldwide vaccine initiatives.

All of our initiatives are focused on serving the long term sustainability of our farm families while working in partnership with our customers throughout the world. We have excellent facilities using advanced systems and technologies. We continue to invest in our innovation capacity, new products and new ways to market. We have long term, loyal and deeply valued customers and we have the scale we require to continue to compete successfully on a global basis.

Lakeland Dairies’ Chairman, Niall Matthews said,

The global nature of world trade continues to require scale and efficiency in meeting market demands. On one hand, we are always influenced by global socioeconomic considerations; on the other, we have achieved the economies of scale to enable us to be flexible and to successfully steer our course through often choppy waters.

The 1.9bn litres of milk produced by our dairy farmers is manufactured into the highest quality, natural and wholesome dairy products, creating long term value for our overall co-operative enterprise. Our annual report demonstrates resilience and adaptability which is reassuring for our 3,200 farm families, as primary producers, in terms of the sustainability that we require to underpin the current and future success of our dairy farming.

Niall Matthews, Corcreaghy, via Carrickmacross, Co. Louth, has been appointed Chairman of Lakeland Dairies Co-operative Society Ltd. Mr. Matthews was elected to the Board of Lakeland Dairies in 2017.

Andrew McHugh, Newtownforbes, Co. Longford, has been appointed Vice-Chairman. Mr. McHugh was elected to the Board of Lakeland Dairies in 2016.

Alan McCay, Dunamanagh, Co. Tyrone, was re-elected Vice-Chairman, where there are two holders of this role on the Board. Mr. McCay joined the Board of Lakeland Dairies in 2019.

Mr. Matthews succeeds Aloysius Duffy who has served with distinction as Chairman since 2014 and as a Board member since 2010.

Mr. McHugh succeeds Colin Kelso who has served with distinction as Vice-Chairman since 2016 and as a Board member since 2013.

Niall Matthews said,

I am very honoured to be appointed Chairman of Lakeland Dairies and on behalf of the Board and members of the co-operative, I warmly acknowledge and express our appreciation for the ongoing contribution of both Alo Duffy and Colin Kelso to the growth and development of our society over many years and wish each of them continuing success in their dairying enterprises. Working with the Vice-Chairs, Board Members, CEO and Management of the co-operative, I look forward to the continuing strong progress of Lakeland Dairies.

Lakeland Dairies is one of Ireland’s leading dairy processing co-operatives, operating across sixteen counties on a cross border basis, collecting over 1.85bn million litres of milk, produced by 3,200 farm families, and processing this into a wide range of value-added dairy food ingredients, consumer and foodservice products which it exports to over 80 countries worldwide.

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All editions can be viewed here as they are published.

The Lakeland Dairies / Teagasc Joint Development Programme is providing a Spring Management Series of advice, tips and information to help milk producers get the best from their dairy enterprises over the spring period and onwards. Each week, over twelve weeks, updates will be provided in a newsletter format across three main themes:

1. Labour Efficiency & Spring Workload
2. Animal Health & Milk Quality
3. Spring Grassland Management

 

Each of the above themes is colour coded for easy reference. As they are published, all editions are available on the Lakeland Dairies website at:  Lakeland.ie/Spring.

They’re in ‘pdf’ format so they can be viewed online and easily downloaded to keep on file or print out.

The Lakeland Dairies / Teagasc Joint Development Programme is aimed at maximising efficiency and profitability for dairy farmers in a sustainable manner for the future. The programme uses the findings of locally and regionally based research that is directly relevant to the needs of Lakeland Dairies milk suppliers.

Welcoming the initiative, Chairman Alo Duffy said,

Dairy farmers are entering a hugely busy period with calving and the run-in to peak milk production so this new Spring Management Series is very timely and relevant and I’m looking forward to reading each edition. Our mission is to promote the sustainability and wellbeing of our dairy farming families and rural communities and sharing knowledge and information is key to that task. We’re grateful to farmers who have shared their insights with us and to our Joint Programme advisors, member relations and agribusiness teams for co-ordinating this initiative.

Lakeland Dairies / Teagasc Joint Development Programme advisors are available by phone to discuss all farm related matters.

• Colin Anderson 087 7467424
• Owen McPartland 087 3302254
• Adrian McKeague 087 4138584

You can view the latest edition by clicking on the following link: Lakeland.ie/Spring 

Lakeland Dairies will hold the co-operative’s Annual General Meeting online at 11 am on Wednesday 2nd December and has written to all members inviting them to register.

While usually the co-operative’s AGM would be held with members attending in person, this year’s meeting will take place online in view of ongoing recommendations and restrictions that are in place to support public health during the current pandemic crisis.

Michael Hanley, Group CEO of Lakeland Dairies said,

“It’s very important for Lakeland Dairies to hold an AGM for members to gather and review the business of their society and, while the clear preference would be to hold a physical meeting, this is not possible due to the current crisis where the health and safety of our members, milk producers, staff and communities is our number one priority.  The online meeting will contain all of the usual business of a physical AGM and we are encouraging members to register and attend.”

The Annual General Meeting is open only to Lakeland Dairies’ shareholders and all relevant details are included in the Notice of AGM which has been posted out directly to members.  Participants will need to use a home computer, laptop, smartphone or tablet to attend. The Member Relations team at Lakeland Dairies are also available to answer any enquiries.

Lakeland Dairies has announced Dr. Seán Brady as the Society’s nomination to the Board of Ornua.

Dr. Brady has a lifetime of experience in the Irish dairy and agriculture sectors. He is currently a Director of Animal Health Ireland and the Irish National Stud as well as the former Chairman of Food Harvest 2020.

He previously served as Managing Director of both Greencore Malt and Irish Sugar as well as being acting Head of Operations with LacPatrick Dairies. He started his career in Killeshandra Co-op prior to the formation of Lakeland Dairies where he was General Manager, Dairy Division.

Dr. Brady holds a Ph.D in Food Science from University College Cork (UCC) as well as a Diploma in Applied Finance from the Irish Management Institute.

Commenting on Dr. Brady’s nomination, Lakeland Dairies’ Chairman Alo Duffy said:

“Over the course of four decades, Dr. Seán Brady has proven himself to be one of the most innovative, energised and pioneering leaders in Irish dairying and the wider agriculture sector.

“Dr. Brady has vast experience in a range of major agriculture companies on the island of Ireland. He has shown true leadership in each area he has worked in and I am convinced he will represent the dairy sector with distinction on the new Board of Ornua,” Alo Duffy said.

Pictured (L-R) Eamon Duignan (General Manager, Member Relations, Padraic Greenan (Lakeland Dairies milk supplier, Ardaghey, Co. Monaghan) and Alo Duffy (Chairman of Lakeland Dairies).

If you’re milking, get MilkedIn!

Lakeland Dairies has launched an innovative new ‘MilkedIn’ app for our 3,200 milk suppliers to help streamline their access to important farm information.

Lakeland Dairies MilkedIn is a free app available to all Lakeland Dairies suppliers which allows farmers keep on top of their daily herd performance, review milk test results, look back at collection histories and compare data with previous years.

The user-friendly and free MilkedIn app is available for download for Apple and Android devices through the iPhone App and Google Play stores.

The development and launch of the Lakeland Dairies’ MilkedIn app is another step in a continual process of Lakeland Dairies providing suppliers with all the necessary information they need to make sound and informed decisions regarding their own herd.

Commenting on the launch of the MilkedIn app, General Manager of Lakeland Dairies Member Relations, Eamon Duignan said:

“We’re delighted to bring the pioneering Lakeland Dairies MilkedIn app to our 3,200 suppliers in Northern Ireland and the Republic of Ireland. 

“On an individual basis, farmers can check important information including collection histories, quality results and milk constituents as well as examining the performance of their herd. The MilkedIn app allows farmers to compare their performance with previous years. We will also continue to develop it with further information and services into the future.

“The MilkedIn app is an innovative and exciting development and is another offering available to the Lakeland Dairies farmers to help equip them with information to aid their on-farm decision making. We encourage all farmers to download the app or to contact Member Relations on 1890 47 47 20 with any queries,” Eamon said.

Download Guide ROI      Download Guide NI

Lakeland Dairies, the largest cross-border dairy processing co-operative on the island of Ireland, has posted its results for the year ended 28th December 2019 with Group revenues crossing €1bn for the first time in its history. In doing so, Lakeland Dairies has doubled Group Revenues in the past five years. 

The Lakeland Dairies 2019 Annual Report is the first since the historic merger of Lakeland Dairies and LacPatrick Dairies, completed in April 2019.

Lakeland Dairies collects 1.85bn litres of milk from 3,200 farm families across 16 counties in Northern Ireland and the Republic of Ireland. The co-operative has a portfolio of 240 different dairy products made on eight processing sites which it exports to 80 countries worldwide.

Lakeland Dairies Group Revenues: €1.03bn.

• Lakeland Dairies achieved record revenues of €1.03bn in 2019 across its four operating divisions of Food Ingredients, Foodservice, Consumer Foods and Agribusiness.
• Group revenues increased by €224.6m (+27.7%) on the prior year figure of €810.5m. This yielded an Operating Profit of €20.5m, up by €2.97m +16.9% and EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation) of €42.9m which increased by €9.3m. 
• Lakeland Dairies concluded the year with a significantly enhanced balance sheet including Shareholders’ Funds of €197.2m. 

Food Ingredients Division Revenues: €583.8m.

Food Ingredient revenues increased by 19% to €583.8m, based on overall positive trading conditions, strong demand for our functional and enriched powders, proteins and dairy fats, and organic growth across the combined ingredients operations of both former societies.  

Foodservice Division Revenues: €239m. 

The Foodservice Division delivered revenues of €239m and continued to build value across its customer base in every continent worldwide. 

Consumer Foods Division Revenues: €139.7m. 

Consumer Foods delivered a solid performance in 2019 in line with expectations, yielding revenues of €139.7m for the year with all categories providing growth. 

Agribusiness Division (Lakeland Agri) Revenues: €72.4m. 

2019 was a successful year for Lakeland Dairies’ Agribusiness Division where revenues at €72.4m were in line with budget expectations. Feed volumes of over 210,000 tonnes and fertiliser volume of over 27,000 tonnes were achieved. 

Commentary

Lakeland Dairies Group Chief Executive Michael Hanley said he is happy with the 2019 performance.

“As a business, we’re pleased to report this strong and prudent set of accounts. This is a positive outcome for 2019, based on a strong and efficient performance across all operating divisions.   

“This has been done while leveraging from additional revenue streams and the overall synergies achieved by the merger of Lakeland Dairies and LacPatrick Dairies which created the newly constituted Lakeland Dairies Co-operative Society Ltd in April of last year. 

“The success of the merger process to date has demonstrated the true potential for Lakeland Dairies to realise our strategic plans for continuing growth and development in the decades ahead. 

“We are driven by delivering further value and long-term sustainability for our 3,200 farm families, north and south, while providing competitive advantage for our global food ingredients customers in 80 markets worldwide.

“There are considerable challenges ahead, however. The ongoing market disruption caused by the COVID-19 global pandemic has put a significant drag on markets, particularly in the foodservice sector. A lack of clarity on the shape of the trading relationship between the EU and the UK post-Brexit is of concern to us too. Not to mention the ongoing global dairy supply and demand dynamic which has a huge influence on international markets. 

“Lakeland Dairies traces its roots back over some 125 years. In that time, we have faced and overcome many challenges. Backed by our 3,200 farm families as well as our loyal customers and committed staff, we are confident of being able to tackle these challenges,” Michael Hanley said. 

Lakeland Dairies, Chairman, Alo Duffy said: 

“2019 was a truly historic year for the dairy industry and the milk suppliers in the northern half of the island following the merger between Lakeland Dairies and LacPatrick Dairies in April.

“The merger that we have collectively and cooperatively achieved has been a success. This has enabled us to go from strength to strength and it is now instrumental in our capacity to deal with the current challenging times facing us all.  Based on our positive achievements and our continuing co-operative endeavours, you may be assured that we will meet any such challenges and many opportunities with an absolute and unwavering determination to succeed. I thank each of our 3,200 farm families for the continued support of their Society,” said Alo Duffy.

Download Full Report

Pictured: Michael Hanley (CEO), Sean & Shane Sloan and Aloysius Duffy (Chairman)

Farm families in Co. Down and Co. Cavan have been announced as the Lakeland Dairies Supreme Milk Quality Winners.

The awards publicly recognise the achievements of Lakeland Dairies milk suppliers who are committed to quality in all aspects of their milk production.

Winning a milk quality award is a truly excellent achievement. The winners emerged from among 3,200 farm families across 16 counties who produce milk for the 1.85bn Lakeland Dairies milk pool.

For the first time in the history of the Lakeland Dairies Milk Quality Awards, a joint Supreme Champion of the awards have been announced – one from Northern Ireland and one from the Republic of Ireland.

Stanley and Tanya Graham from Killeshandra, Co. Cavan along with Sean, Shane and Stephanie Sloan from Kilkeel, Co. Down have both been named as Supreme Champion.

The Graham family also took home the <500,000 litre producer category in the Republic of Ireland while the Sloan family are winners in the >1m litre producer category in Northern Ireland.

Pictured: Michael Hanley (CEO), The Graham Family and Aloysius Duffy (Chairman)

Winners

Outside of the Supreme Champions, Lakeland Dairies has also announced the winners in the other categories of the Milk Quality Awards.

In the Republic of Ireland, Dermot Sherry from Drumhillock, Co Monaghan is the winner in the >500,000 litre producer category. In Northern Ireland, Cecil and Gordon Wilson from Dromara, Co. Down won the <1m litre producer category in Northern Ireland. 

New entrant

Lakeland Dairies continues to pay tribute and recognise the impact new entrants have on the overall business. In the past five years, in excess of 300 new entrants have started supplying Lakeland Dairies.

Ken Whittle from Walsh Island, Co. Offaly has been declared the winner of the Republic of Ireland new entrant category while David Hylands from Limavady, Co Derry / Londonderry wins the Northern Ireland new entrant category. 

Lakeland Dairies Chairman Alo Duffy paid tribute to the award winners: 

“Despite the onset of the COVID-19 global pandemic, it is critical to recognise and reward the commitment of our 3,200 farm families to the highest standards of milk production, sustainability, hygiene, animal health and overall care for the environment. 

“With Lakeland Dairies exporting high-quality products to some 80 global market, the basis of our exporting success is based on the supreme milk produced inside the farm gate. We continue to recognise the integral aspect of our farmers to the ongoing success of the Lakeland Dairies business. 

“Quality is the building block of our entire business and I acknowledge all my farming colleagues for their continued commitment to excellence. 

Lakeland Dairies Group CEO, Michael Hanley said:

“The global reputation and success of our business starts with every single litre of milk sent to us for processing and is therefore based on the dedication and hard work of the 3,200 farm families who we are deeply proud to have within our cooperative.

"Our customers place the highest levels of trust in our credentials of sustainability, quality and reliability in meeting their needs for value-added dairy products.

“We are able to fulfil that commitment based on the excellent endeavours of our dairy farmers.”

At Lakeland Dairies we are on a constant mission to improve the quality of the milk we use, which ends up in our dairy products that are exported to some 80 countries around the world.

Lakeland Dairies suppliers have made huge inroads into lowering their SCC levels. The key to low SCC levels in herds begins with hygiene in the parlour.

The video below details the steps farmers can take to further reduce their SCC levels, while Emily Donaldson from the quality team in Lakeland Dairies explains just why low SCC levels are critical for producing dairy products.

 

At Lakeland Dairies, we have been on a continuous programme of reducing chlorates and TCM residues in milk.

We are reminding our farmers to continue to take a proactive approach when it comes to reducing these in milk. High standards for infant formula and butter products require us to eliminate chlorates and TCMs in milk.

The removal of chlorine from cleaning routines would significantly reduce the risk of these residues in milk and, consequently, residue levels in these final products like butter and infant formula.

Farmers have made great inroads, but it continues to be a huge challenge for the sector and levels remain stubbornly high.

In this video, we show how farmers can move to chlorine-free on their farm. Co Cavan farmer Padraig Lynch explains how his farm has made the switch with no disruption while maintaining his hygiene and quality standards.

 

We also take you to the Lakeland Dairies lab where Technical Manager Niamh McGovern outlines why chlorine in milk is such a serious issue.

Chlorine-free detergents

A full range of Chlorine-free detergents are available in Lakeland Agri stores and for further information on making the switch to a chlorine-free wash routine, contact Member Relations on 1890 47 47 20 or 028 3027 2311.

With COVID-19 continuing to restrict gatherings and large events, Lakeland Dairies continues to provide advice around the Breeding 2020 Season to its farmers with a series of videos, advice and information online.

Members of the Lakeland Dairies / Teagasc Joint Development Programme have been tracking the progress of three Lakeland Dairies farmers over the course of the breeding season. 

Co. Westmeath farmer Robert English, Co. Cavan farmer David Williamson and Co. Monaghan farmer Peadar Quinn have all opened their gates to inform farmers what they are doing as part of their breeding season. 

The first round of videos were filmed at the start of the breeding season and, with a month to go in the spring breeding season, a new round of videos have been launched on our website this week and shared through the Lakeland Dairies relevant social media channels.

Eamon Duignan General Manager of Lakeland Dairies Member Relations said it has been critically important to continue to keep farmers updated and informed while recognising the government guidelines on social interactions.

“The Lakeland Dairies / Teagasc Joint Development Programme is about driving efficiencies and profitability at farm level, with relevant advice based on research and experience from Lakeland farms, including practical tips on the best breeding techniques. With the COVID-19 restrictions essentially limiting farm visits and farm walks, we’re continuing to bring advice and updates to our farm families.

“The #Breeding2020 series of videos have already proven to be hugely successful with the videos containing David, Peadar and Robert having being viewed over 100,000 times through Facebook (www.facebook.com/LakelandAgri) and Twitter (www.twitter.com/DairiesJP).

“We will continue to innovate in order to best serve the needs of our suppliers across the Lakeland Dairies’ catchment area,” Eamon said.

Robert and Mervyn English farm in partnership in Tang, Co Westmeath. They milk over 270 cows on a spring-calving system. The herd is currently doing 25 litres at 3.56% protein and 4.10% fat. Robert explains how they have used sexed semen, conventional AI and now a team of four bulls have been introduced between now and the end of the season in mid-July.  

Adrian McKeague from the Lakeland Dairies / Teagasc Joint Programme recently visited the English farm and this video can be viewed below:

 

David Williamson is a Lakeland Dairies supplier from Bailieboro, Co. Cavan. The Williamsons are milking some 170 cows in a spring-calving system. At present, the cows are performing well at 24.7 litres with a protein of 3.45% and a fat of 4.08%. At the eight-week point of breeding, David has introduced beef AI after inseminating with high-EBI Friesians for the first six weeks. Beef bulls will be used to mop up before the end of the season in July. 

David’s most recent video can be viewed below:

 

Peadar Quinn from Latton, Co. Monaghan works off-farm as well as milking on the home farm. Peadar selects his AI straws using EBI with a fertility sub-index of 150 with fat and protein at 30kg. Peadar’s breeding season runs from 10th May and lasts for 12 weeks.

Peadar’s first video can be viewed below:

 

With marts and the sale of livestock now operating in a more restricted manner, Lakeland Agri has announced a series of measures to help ensure the well-being of calves on farms while also supporting farmers.

Starting now and ending in June, the recommended retail price (RRP) on the Lakeland Agri ranges of Calf Grower Nut and Calf Milk Replacer products will be reduced.

The RRP on the Lakeland Agri Calf Grower Nut will be reduced by €20/t or £20/t for bulk and bags, offer ends Friday 5th June 2020.

For the Lakeland Agri range of CalfSmart 23, CalfSmart 25 and the SkimSmart Milk Replacer ranges, the RRP will be reduced PER BAG by €2 or £2 on all full pallets ordered. This equates to a saving of  €120 or £120 in the case of the CalfSmart range (60 bags on pallet) or € 72 or £ 72 in the case of the SkimSmart range (36 bags on pallet), offer ends Friday 26 th June 2020.

Alan Hurst from Lakeland Agri said the new initiative has been developed with farmer and animal well-being in mind.

“We are in uncertain and uncharted times at present - this is exemplified with the major restrictions being imposed on the sale of livestock in marts. We want to make sure that if farmers need to hold on to calves for longer than they had expected to, they can do so without eroding profitability while upholding the highest quality welfare standards.

“This is a helping hand to our loyal customers at what is a challenging time for everyone in the sector.

“Our dedicated Lakeland Agri Technical Specialists remain ready and able to advise farmers at present by calling 1890 47 47 20 (ROI) or 028 30262311. (NI)

“Our message to farmers is – we may be staying apart but we are still working together,” Alan said.

Proposed changes to the Board structure and electoral areas of Lakeland Dairies are to be brought before a Special General Meeting (SGM) of the co-operative in September.

This follows the Board’s unanimous approval of recommendations made by a corporate governance sub-committee established to review the rules of the Society after the merger between Lakeland Dairies and LacPatrick Dairies was completed in 2019.

Lakeland Dairies has written to all shareholding members with notice of the SGM which will be held on 2 September next. The Board had intended on holding the SGM in May but due to the ongoing COVID-19 public health crisis, has decided to convene the meeting for September.

As provided for in the Rules of Lakeland Dairies Co-operative Society Ltd., the Board established a Governance Sub-Committee - chaired independently by Teddy Cashman with six members of the current Board – to carry out a review of shareholder representation and governance arrangements in the New Society.

Following an extensive consultation process throughout the co-operative and deliberation over several months, the sub-committee reported to the Board with recommendations on new governance structures which the Board approved on 13 February and is unanimously recommending to members at the SGM in September.

In summary, the main recommendations are as follows:

It is proposed that the Society adopts a new Rule book incorporating the recommended changes.  The new Rules are based around the existing Lakeland Rules and include the following modifications:

• The current Electoral Areas will be replaced with 13 new Electoral Areas, based on milk supplier Members, with a broadly equal number of milk supplier members in each electoral area in the Republic of Ireland and each electoral area in Northern Ireland. Each Electoral Area will be represented by one Board member, with 8 Electoral Areas in the Republic of Ireland and 5 in Northern Ireland.
• Each Electoral Area will be divided into Sub-Areas, with 3 Sub-Areas per Electoral Area in the Republic of Ireland and 2 Sub-Areas per Electoral Area in Northern Ireland. 
• Following from the merger in 2019, the current Board has 22 elected members and it is proposed to reduce this to 13 (one per electoral area) with the option to also co-opt up to 3 directors.
• To avoid wholesale changes to the important role of the Board, e.g., by running all 13 elections at once, the elections will instead be held on a phased basis.  Eight of the new electoral areas currently with more than 1 Board member will hold elections in November 2020 and the remaining 5 new electoral areas will hold elections in November 2021.

Various provisions around the length of term a director can serve should he/she win one of these first elections are set out in detail in a circular sent to members.  Following from this set of first elections it is proposed to change the maximum number of years that a Member may serve as a director of the Society from 12 years (3 x 4-year terms) to 10 years (2 x 5 year terms).

Announcing the SGM, Alo Duffy, Chairman of Lakeland Dairies said:

“The merger that we have collectively and co-operatively achieved has been a success for our 3,200 farm families spread across 16 counties in Northern Ireland and The Republic of Ireland. This has enabled us to go from strength to strength and its success to date is now instrumental in our capacity to deal with the current challenging times facing us all.

“The Board, through the Governance Sub-Committee” has used the time since the Merger to review our corporate governance to ensure that our democratic and leadership structures will continue to serve the best interests of all our members into the future and the Board is unanimously recommending these resolutions. I am grateful to the independent Chairman of the Governance Sub-Committee Teddy Cashman and the members of the sub-committee for the very thorough and diligent process they have carried out in bringing forward these logical and practical proposals.”

We have rolled out a new series of measures to help halt the spread of COVID-19 as well as protecting the health and wellbeing of farmers and customers.

For customers of the Lakeland Agri stores in Longford Town, Lough Egish and Monaghan Town, new Perspex screens have been installed.

This is on top of clear protocols aimed at halting the spread of COVID-19.

Lough Egish Store Manager Martin McCooey goes through the current situation in our video below:

 

To help the curb the spread of COVID-19, Lakeland Dairies has implemented a strict policy and set of protocols for farmers and hauliers around the collection of milk from farm - see video below.

Contact Member Relations 1890 47 47 20 for further information.

 

Our three Lakeland Agri stores in Longford, Lough Egish and Monaghan Town remain open for business. To protect the health and safety of our customers and staff we have introduced new social distancing protocols. Emmet Flood manager of the Longford store outlines these protocols in the video below.

Stay safe, stay well.

 

Please review the protocol for Lakeland Dairies suppliers to prevent the spread of the COVID-19. Click on the button below to download the PDF.

Download COVID-19 Protocol

This guidance is on the steps Lakeland Dairies milk suppliers should take to reduce the chances of picking up or spreading any virus but most especially in the present climate Covid 19 Coronavirus.

It should be said at the outset that currently the chances of catching this virus is low but it is an evolving situation.

Farmers should take the following precautions / preparations:

• Focus on following normal hygiene protocols advised by the HSE / NHS
• Where possible make hand sanitiser available for lorry drivers
• Avoid close contact with tanker drivers. Maintain a distance of two meters at all times.
• Contact your local milk advisor if someone on the farm / in the household has visited areas outside the Island especially Italy.
• Contact your local milk advisor if someone on the farm / in the household is suspected of having the virus or is undergoing tests. (note; This will be treated in the strictest confidence)
• Leave samples at designated areas on Lakeland Daires sites for testing, contact your Member Relations / Milk Advisor for information on each site.
• Contact Member Relations / Milk Advisor where possible instead of coming on site.
• The most effective way of preventing this virus is the practice of good hand hygiene, see diagram overleaf
• If you are concerned that anyone in the household has Covid-19 coronavirus contact your doctor or in ROI phone 1850241850, 112 or 999; in the UK phone 111.
• Do not visit your local surgery or A&E

(Picture L-R) Conor Boyle General Manager, Finance Ireland, Maud Conroy Kane, General Manager Finance Ireland Leasing, Alo Duffy Chairman Lakeland Dairies, Eamon Duignan, Member Relations Manager, Lakeland Dairies.

Lakeland Dairies has partnered with over a dozen leading equipment manufacturers and Finance Ireland to roll out an innovative new scheme that will help farmers invest in critically important on-farm equipment.  Finance Ireland will use funds from the Strategic Banking Corporation of Ireland (SBCI) to support the scheme.

The FundEquip scheme allows Lakeland Dairies suppliers make investments in machinery and equipment on their farms providing loans at very competitive interest rates over a three-year or five-year term.

Equipment which is available through FundEquip includes:

• Bulk tanks and cooling equipment;
• Feed bins;
• Generators;
• Milk recording equipment;
• Solar panels;
• Automatic calf feeders;
• Auto ID / heat detection units;
• Plus other essential items.

Loan amounts under FundEquip range from €3,000 to €75,000 with funding options of between three and five years at interest rates of 3.9% for three-year terms and 4.5% for five-year terms. In order to manage cashflow effectively, repayments are deducted from a farmer’s milk cheque only between April and November.

Applicants must have a milk supply agreement and have been supplying Lakeland Dairies for longer than 12-months. No security is required but applicants must be able to show a credit history.

Commenting on the FundEquip scheme, Lakeland Dairies Chairman Alo Duffy said:

“We are delighted to have partnered with Finance Ireland, the SBCI as well as many of the country’s leading farm equipment suppliers to bring the FundEquip scheme to the Lakeland Dairies farm families.

“As dairy farmers continue to grow their enterprises, this can require new equipment to cater for ongoing expansion and to ease the overall workload on the farm. The FundEquip scheme provides financing for important farm equipment such as bulk tanks, generators, milk cooling equipment, solar panels, automatic calf feeders and feed bins among other items at competitive interest rates.

“The flexible and tailored repayment structure over three or five years allows for sustainable investment on farms while being able to manage cashflow over the duration of the loan.

“We are pleased to bring FundEquip to our milk suppliers. This supports our long-term goal of sustainable dairy farming into the future,” said Mr. Duffy.

Billy Kane, Chief Executive of Finance Ireland said:

“We are delighted to work with Lakelands on the one hand and SBCI on the other to continue to bring innovative financial solutions to Irish farmers.  We have a strong commitment to the agriculture sector having already pioneered the rollout of Milkflex for Lakeland suppliers. We see this initiative scheme as a further demonstration of our confidence in the future of Irish agriculture.”

PICTURED - Lakeland Dairies launches innovative labour-saving booklet for milk suppliers. Alo Duffy, Chairman of Lakeland Dairies with dairy farmer Patrick O’Neill, Edgeworthstown, Co. Longford (centre), Colin Anderson (left) and Owen McPartland of the Lakeland Dairies / Teagasc Joint Development Programme (right).

As part of the third phase of the Lakeland Dairies / Teagasc Joint Development Programme, an innovative and informative 28-page booklet has been produced with recommendations, tips and case studies aimed at making farm life easier for Lakeland Dairies’ milk suppliers.

The booklet is being sent to Lakeland Dairies suppliers in the coming days. It uses real life examples from farmers across the Lakeland Dairies catchment area showcasing the best labour-efficient techniques on their farms to ensure a good work/life balance.

The booklet also takes a calendar-style approach to labour looking at key areas famers can address at every stage of the year from the dry period to calving and from breeding to grass management.

It was written by Colin Anderson with Adrian McKeague and Owen McPartland from the Lakeland Dairies / Teagasc Joint Programme - aimed at maximising efficiency and profitability for dairy farmers on a sustainable basis for the future. The programme uses the findings of locally and regionally based research that is directly relevant to the needs of Lakeland Dairies milk suppliers.

Adrian McKeague said, 

“As herd size has expanded in recent years, we wanted to showcase simple, time efficient farming techniques, already working across our catchment area for our milk suppliers, with this booklet.”

“Total hours worked on a farm is an important element in planning dairy expansion and is often overlooked. An additional labour cost should be included into expansion planning.

“Practical advice includes moving milking from late evening into the afternoon, milking just once a day in February and how best to prepare for the calving season including ongoing calf management. The importance of having a proper grazing infrastructure in place is also emphasised with the intention of having cows grazing to the maximum possible extent.

“Herd management techniques are covered including the need to have a fixed breeding season and also to remove late calving cows from the system, which helps to maximise milk yields on the most appropriate basis.  Additionally, it’s essential for dairy farmers to match the size of their milking units to the actual size of their herd as this helps to reduce overall working time on the farm.  There is also a useful section on how best to use the services of contractors on the farm.”

The booklet analyses the factors influencing working time on the farm. It places a strong emphasis on health, safety and wellbeing for dairy farmers, underpinned by an improved work-life balance and effective systems which allow farmers to take more regularised time off on a routine basis. It concludes with tips on compliance and a useful  ‘labour improvement calendar’ outlining some of the key considerations that farmers need to take into account each year.

Lakeland Dairies Chairman, Alo Duffy said the need for a strategic approach to farm labour has never been greater and that Lakeland Dairies is taking a very proactive approach to the issue with this booklet. 

“As herd sizes grow, so too does workload which needs to be handled as efficiently as possible to avoid undue pressure for the farmer. The overall balance that needs to be achieved comes from knowing what is already tried and tested, implementing practical initiatives while taking time to plan out the farm’s activities and also getting advice and assistance. 

“Everything needs to be tailored to the individual circumstances of each farm and decisions need to be taken on the balance of work to be achieved between the farming family, employees and contractors.  I thank Lakeland Dairies / Teagasc Joint Programme and the dairy farmers who have taken part in preparing this research which is directly relevant to the dairy farming families of Lakeland Dairies.”

Michael Hanley, CEO of Lakeland Dairies said,

“Dairy farmers work long and hard, day in and day out.  As they continue to grow their milk production, this raises important issues around the provision of labour to cope with this expansion. It’s one of the biggest challenges facing dairy farmers today.  Our mission is to promote and secure the livelihoods and sustainability of our 3,200 dairy farming families. It is a very pressurised job where managing workload requirements can be a key element of the success and wellbeing which we want to establish for all of our dairy farmers.”

Teagasc figures indicate that as many as 6,000 people will be required to fill on-farm roles in Ireland over the next decade with many of those on dairy farms.  

Over 93% of Lakeland milk suppliers have said they will stay in milk production for the future, according to research undertaken by the co-operative in recent years.

In addition to farmers who have already significantly grown their output, Lakeland milk suppliers said they will further expand their milk production by approximately 5% in each year to 2022. 

Just over one-third of Lakeland milk suppliers currently employ staff on their farms. Of these, 8% employ staff on a full time basis and 28% on a part time basis.

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Sixty (60) Lakeland Dairies farmers have been recognised and rewarded for their commitment to excellence at the recent Animal Health Ireland (AHI) CellCheck awards.

The AHI CellCheck awards are presented to milk suppliers nationally with the lowest weighted annual average somatic cell count (SCC) for the previous year’s supply.

The 60 Lakeland Dairies CellCheck winners are spread right across the co-operative’s milk supply catchment area in the Republic of Ireland.

Lakeland Dairies’ Chairman Alo Duffy paid tribute to the 60 farmers, their families and the top-quality milk they produce, saying.

“Since the inception of the AHI CellCheck awards, it’s important to note the maximum SCC of award recipients has fallen each year from 103,000 cells/ml in 2014 to 76,500 cells/ml in 2018. This is testament to the dedication of Irish dairy farmers that there were several sixth-time awardees in attendance.

“On behalf of everyone at Lakeland Dairies, I want to congratulate all of the Lakeland winners for their historic achievement at this year’s CellCheck awards. As well as winning the pride and acclamation of the dairy industry, the farmers will receive a plaque to place in their parlour that will act as a reminder of their fantastic achievements and commitment to excellence.

“Being a CellCheck winner shows that you have a dedication to producing high-quality milk every day. These awards are one of the biggest achievements a dairy farmer can win,”

Lakeland Dairies has paid tribute to the McCoy family having won a national award at the 2019 National Dairy Council (NDC) / Kerrygold Quality Milk Awards.

David and Gladys McCoy took home the Pioneering in Dairy Award at the national ceremony which took place at ceremony in Dublin this week.

David and Gladys McCoy from Smithboro in Co. Monaghan supply milk to Lakeland along with their four children Clive, Mark, Deane and Stephen.

The McCoys have expanded their cow numbers while still focusing on increased performance and efficiency on the farm. In 2018, they milked an average of 75 cows with an impressive performance of 596kg of milk solids per cow. The cows averaged nearly 8,000 litres last year with protein of 3.33% and 3.92% butterfat.

Quality is key for the McCoys with a 2018 average somatic cell count (SCC) of 78,000 and TBC of 8,000.

Lakeland Dairies chairman Alo Duffy paid tribute to the McCoys.

“We are both delighted and proud of the McCoy’s achievement. To win such a prestigious national award underlines their commitment to excellence at farm level. The Kerrygold / NDC Quality Milk Awards recognise standards of excellence in dairy farming. The McCoys’ desire to constantly innovate has rightly been rewarded by winning the Pioneering in Dairy award,” Mr Duffy said.

The McCoys were nominated by Lakeland Dairies and, after a rigorous selection and judging process, they were shortlisted in the final 13 farms from across the country.

Ahead of the 2019 Kerrygold / National Dairy Council (NDC) Quality Milk Awards national final, Lakeland Dairies has paid tribute to its milk suppliers the McCoy family for making it to the shortlist.

David and Gladys McCoy from Smithboro in Co. Monaghan supply milk to Lakeland along with their four children Clive, Mark, Deane and Stephen. The farm has been in the family for 50 years.

The McCoys have expanded their cow numbers while still focusing on increased performance and efficiency on the farm. In 2018, they milked an average of 75 cows with an impressive performance of 596kg of milk solids per cow. The cows averaged nearly 8,000 litres last year with protein of 3.33% and 3.92% butterfat.

Quality is key for the McCoys with a 2018 average somatic cell count (SCC) of 78,000 and TBC of 8,000.

The McCoys were nominated by Lakeland Dairies and, after a rigorous selection and judging process, they were shortlisted in the final 13 farms from across the country.

The Kerrygold / NDC Quality Milk Awards recognise standards of excellence in dairy farming, with dairy co-operatives throughout the country invited to nominate their top suppliers.

Commenting on the family making it to the final shortlist, Lakeland Dairies’ chairman Alo Duffy paid tribute to the McCoys.

“David, Gladys and family set standards for their farm that are above and beyond the norm. Their attention to detail, commitment to excellence and passion for success made them the standout candidates for this year’s Quality Milk awards.

“It is a pleasure to work with the McCoys and, on behalf of everyone in Lakeland, I would like to wish them well at the national ceremony next week. We are very proud of their achievements,” Alo Duffy said.

The 2019 Kerrygold / NDC Quality Milk Awards final takes place on Wednesday 2 October next in Dublin.

Strategic units to be retained, redundancies will be necessary

Lakeland Dairies has today (30 August) announced a plan for the adjustment of processing activities on its site in Monaghan.

This plan will see a number of strategic operations retained on the site. Redundancies will also be necessary as some operations will be ceased or transferred to other processing locations.

Since the merger of LacPatrick Dairies and Lakeland Dairies was completed in April 2019, the new Society has reviewed how best to integrate the functions of all sites in order to best support the 3,200 Lakeland Dairies farm families.

Prior to the merger, the Monaghan site, as part of the LacPatrick Dairies business, had significant and recurring losses. The site has had little or no investment in processing capabilities over the years. 

Michael Hanley, CEO of Lakeland Dairies said: 

"It is essential for us to realise efficiencies from within our merged group of processing facilities and to achieve sustainable profitability in the interests of our farm families on a long-term basis for the future.

"After careful consideration, the Board has approved this plan for the Monaghan town site which will reduce operating costs while providing for the continuation of strategic units for the business.

"Arising from this adjustment of operations, it is regrettably the case that a number of redundancies will be required in Monaghan and we will enter into consultation to discuss the roles that will be affected. We will also be providing details of any redeployment opportunities available in other parts of the Lakeland Group.  Of the 130 jobs in Monaghan, there will be some 68 redundancies on the site while some will be redeployed elsewhere within the Lakeland Group.

"Lakeland Dairies processes over 1.85 billion litres of milk annually and allocates this milk as flexibly and profitably as possible to different sites and into different product areas which are in the highest market demand, yielding the highest milk price, at different times throughout any given year. 

"While this development is difficult for everyone concerned, it is necessary to ensure we operate our business in the most efficient manner. It has been the core strategy of Lakeland Dairies to ensure that all sites are run as profitably as possible to ensure we are well-positioned to meet the demand of a competitive global dairy market while protecting the future of our 3,200 farm families."

Picture – LAKELAND DAIRIES SUPREME MILK QUALITY WINNERS – Dairy farmers Alan and Catherine Doak, Omagh, Co. Tyrone won the Lakeland Dairies Supreme Milk Quality Award. The Doaks also won the 0 - 1 Million litres Northern Ireland milk production category, for the exceptional quality of their milk supply to Lakeland Dairies. Alan received the award from Mairead McGuiness MEP, Michael Hanley, left, CEO, Lakeland Dairies and Alo Duffy, Chairman, Lakeland Dairies, right.

At the Lakeland Dairies Milk Quality Awards, dairy farmers from Northern Ireland and the Republic of Ireland were honoured 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 quality in all aspects of their milk production.

Winning a milk quality award is a truly excellent achievement. The winners emerged from among 3,200 farm families who produce milk for the 1.8bn Lakeland Dairies milk pool.

The awards were presented by Mairead McGuinness MEP (Vice-President of the European Parliament), with Lakeland Dairies Chairman Alo Duffy and Group Chief Executive Officer, Michael Hanley at a special event on Friday 28^th June.

Supreme Milk Quality Award Winner

Alan and Catherine Doak, Omagh, Co. Tyrone won the Lakeland Dairies Supreme Milk Quality Award. The Doaks also won the 0 - 1 Million litres Northern Ireland milk production category, for the exceptional quality of their milk supply to Lakeland Dairies.

Milk Quality Award Winners

John Anthony McNally of Drumroo Farm, Drumrooghill, Lisnalong, Co. Monaghan, won the 500,000+ litres milk production category.  The runner-up in this category was John Malone, Walshestown, Mullingar, Co. Westmeath.

• David Boyd and Trevor Keith from Glaslough, Co Monaghan won the 0 – 500,000 litres milk production category, closely followed by runner-up Patrick Reilly, Cammagh, Moyne, Co. Longford.

Sustainability Award

• Peter Robinson from Ballinagore, Co. Westmeath, won the Sustainability Category of the awards for outstanding commitment to sustainable milk production, based on measures including carbon footprint, biodiversity, water management and milk quality results.

Northern Ireland

• Iain McLean, Bushmills, Co. Antrim - represented at the awards by sons Matthew and John - won the 1 Million+ litres milk production category.  The runners-up in this category were The Johnston Family, represented by Stephen Johnston and his son Isaac, Ballinamallard, Enniskillen, Co. Fermanagh. 
• Alan and Catherine Doak, Omagh, Co. Tyrone won the 0 - 1 Million litres category and were also crowned Supreme Milk Quality Award Winners. Alan received the award together with his son James.
• The overall Runners-up in the 0 - 1 Million litres milk production category were Sean and Padraig McKee, Toomebridge, Co. Antrim.

New Entrants

• In the category for New Entrants to Dairy Farming, Ciaran Boylan, Shercock, Co. Cavan and Ian McClelland Banbridge, Co. Down both won awards for exceptional milk quality.

Lakeland Dairies Chairman Alo Duffy paid tribute to all of the award winners:

Winning a quality award is something really special. The awards symbolise many years of commitment and hard work in achieving the highest possible standards of milk production including sustainability, hygiene, animal health and overall care for the environment.

As a globally focussed dairy exporter, we continuously provide reassurance to our customers about the quality of our products, with systems that trace quality throughout the food chain. Our farmers and the litre of milk are the first building blocks in that process. The winners here today understand these requirements. I express my admiration and pride to all of the winners in the Lakeland Dairies Milk Quality Awards.

 

Lakeland Dairies Group CEO, Michael Hanley said:

Lakeland Dairies is proud to put the work of our farmers at the centre of our business and we are delighted to be able to reward and recognise their commitment to excellence at our Milk Quality Awards.

We’re all working in a deeply competitive and globalised marketplace. To succeed in that environment, you need to be able to differentiate yourself based on your reputation and the quality of what you do.

Lakeland Dairies is achieving this through the excellence and distribution of our value-added dairy products, the technological capability of our processing facilities and the high quality of our milk pool from our farmers.

Our customers worldwide demand these high standards and our dairy farmers are meeting this requirement. This will ensure sustainably built success buoyed by the scale and efficiency of Lakeland Dairies where we will continue to support our farmers into the future.

 

Mairead McGuinness MEP said:

Ireland has the capacity to meet the demand for safe, traceable and nutritious wholesome food, produced in a sustainable way. The world population is growing and so too is the demand for food of high quality. These awards recognise excellence in quality milk production. I congratulate the award-winning milk suppliers of Lakeland Dairies for their commitment to excellence and I wish Lakeland Dairies and all of its members continuing success in the future.

Lakeland Agri, in conjunction with the Lakeland Dairies / Teagasc Joint Programme, will host a major interactive grassland event in July. The Getting More from Grassland event is taking place on Wednesday 10 July next and will bring industry-leading experts from across the grassland, soil fertility and technology sectors together in one spot.

The event will take place on the farm of Alan Mackarel near Clones in Co Monaghan. Alan has been on a continuous journey of reseeding and soil improvement on his farm over the years.

On the day, topics including how to get your soil structure and fertility right and what seed will match your farm will be discussed. There will also be an interactive demonstration highlighting the differences between ploughing, direct drill and min-tilling and which technique is best for your farm.

Speakers on the day include representatives from Lakeland Dairies, seed companies Germinal and Goldcrop as well as soil fertility experts Dr Stan Lalor from Grassland Agro and Dr David Atherton from Thomson and Joseph.

Alan Hurst is Technical and Product Manager with Lakeland Agri and encouraging farmers to attend.

We are delighted to have put together such as an informative and knowledgeable group of speakers for our Getting More from Grassland event. Getting your soil fertility to the optimal levels will ensure that more grass will grow which will, in turn, help drive profitability at farm level. Productive grassland is the foundation for any successful farm business.

Alan Mackarel is top of his game in terms of growing grass and there will be plenty of practical information for farmers on the day. Lakeland Agri is delighted to be running this event and we hope to see you all there.

The event is approved for the Knowledge Transfer (KT) scheme by the Department of Agriculture Food and the Marine (DAFM) and will count as one of the necessary five meetings as part of the KT scheme.

The Getting More from Grassland will take place on Alan Mackarel’s farm at Granshamore, Stonebridge, Clones, Monaghan on Wednesday 10th July 2019 from 11.00am to 1.30pm.

Eircode: H23 WP68

Refreshments will be served.

DAFM registration for Knowledge Transfer group participants will be from 10.45am to 11.45am

A national farm walk will take place on the farm of the 2018 National Dairy Council (NDC) & Kerrygold Quality Milk Awards winner Darran and Denise McKenna on Wednesday 12th June next.

Darran and Denise from Emyvale, Co Monaghan, who supply Lakeland Dairies, are the first winners of the prestigious Quality Milk Award from the northern half of the country.

The Quality Milk Awards recognise standards of excellence in dairy farming, with dairy co-operatives throughout the country invited to nominate their top suppliers. Qualifying criteria include exceptional standards in milk hygiene, farm standards and farmer innovation and vision.

The McKenna family milks 92 cows and faced stiff competition from eight other farms to take home the award last year.

The farm walk is being organised by Teagasc, Lakeland Dairies the NDC and Ornua (the company behind the Kerrygold brand).

Lakeland Dairies chairman Alo Duffy is encouraging all to attend the farm walk on Wednesday 12^th June.

“We are extremely proud to have suppliers the calibre of Darran and Denise. Their achievement in winning the 2018 NDC / Kerrygold Quality Milk Award is quite outstanding.

“Darran and Denise’s skill, dedication and commitment to excellence over the years made them a very deserving winner of last year’s award. Being the first winners from the northern half of the country is an extra special recognition for their achievement. The McKennas bring passion to all aspects of their farm family and this is clear to see this as you walk about the farm.

“Lakeland is honoured to be involved with Teagasc, the NDC and Ornua today and as part of our shared vision for creating a strong, sustainable industry for all.

“I hope to see you all here on the rolling drumlins on Monaghan on Wednesday 12^th June,” he said.

The farm walk takes place from 1.30pm on the McKenna farm in Emyvale, Co Monaghan H18 CY99.

A quarter of all applications under the second round of the MilkFlex scheme have been from suppliers of Lakeland Dairies.

MilkFlex was established in 2016 to provide dairy farmers in the Republic of Ireland with an innovative loan arrangement which insulates the borrowings from price volatility as well as disease in the herd.

Since the second phase of Milkflex opened last year some 800 applications nationwide have been made with over 210 being made by suppliers of Lakeland Dairies.

Lakeland Dairies has been hosting a series of information workshops across the Lakeland catchment area recently where farmers had the opportunity to get a better understanding of how the innovative loan scheme works.

The workshops took place in Cavan, Kells, Castleblayney, and Mullingar over the last week.

Commenting on the Society’s involvement in MilkFlex, Lakeland Dairies Chairman Alo Duffy said:

“We are delighted to be able to facilitate our suppliers with the MilkFlex loan and we are encouraged to see such a strong uptake. It is an innovative tool for farmers to borrow money at competitive rates to help facilitate critical on-farm investments. Tools that help hedge against volatility in the market are to be encouraged.

“MilkFlex also offers greater competition for farmers in terms of financing and offers farmers another route to funding should they require it,” he said.

MilkFlex is managed by Finance Ireland with funding from the Ireland Strategic Investment Fund (ISIF) and Rabobank.

MilkFlex has built-in ‘flex triggers’ whereby a farmer can adjust their loan repayment terms in response to volatile movements in milk price or disease outbreak, which could typically put farm finances under pressure.

The MilkFlex loan scheme can be used for on-farm investments or to help refinance existing merchant or bank debt. The interest rates are 3.75% with all loans having an eight-year term.

For further information on the Milkflex Loan Scheme, please contact Finance Ireland on 01 6470255.

Lakeland Dairies and Teagasc have expressed delight at the outcomes being achieved from the Lakeland/Teagasc Joint Research Programme, a new Phase Three of which has been launched today. Building on the ongoing success of the initiative over the past six years, the joint programme is aimed at maximising efficiency and profitability for dairy farmers on a sustainable basis for the future. 

The renewed programme was launched on the farm of Mairead and Pat McLoughlin of Birr, Co. Offaly, who are suppliers to Lakeland Dairies. The McLoughlins were recently identified as ‘Champions of Sustainability’ having won the overall Small/Medium Herd Category of the Bord Bia Origin Green Farmer Awards.  They are currently milking 64 cows and are new entrants to dairying since 2014.

The Lakeland / Teagasc Joint Programme uses the findings of locally based research that is relevant to the needs of Lakeland milk suppliers.  It includes technical advice on grassland management, improving milk solids, dairy herd fertility, farm management and sustainable expansion, among other important areas.

The joint programme was first established in 2013 with a dedicated team of dairy specialists to work with Lakeland milk suppliers in an advisory capacity. The advisors also provide a planning and technical service to potential new entrants to milk production.

To date, the advisory team have delivered over 150 workshops, farm walks and seminars at local and regional level, including a large scale national open day and land and labour management workshops. Advisors have carried out over 2,700 farm visits. A monthly technical bulletin has also been developed focussing on issues affecting farms on a month to month basis each year.

Compared to Lakeland averages in 2012, when the Lakeland Teagasc Programme started, participating Lakeland farmers have achieved as follows:

• There has been a 16% increase in Milk Solids / Cow
• Milk protein % has increased from 3.28% to 3.37%
• Calving Intervals have reduced by 12 days
• The 6 week calving rate has improved by 20%
• Milk Output has also increased by 50% during this period

Phase 3 of the Joint Programme is now underway. In addition to all existing aspects of the current programme, the additional focus for the next three years will be on:

Antimicrobial Resistance / Animal Health including the promotion of Milk Recording which Lakeland says has a huge role in raw milk quality and the increase of efficiency on farms.  Currently 38% of Lakeland milk suppliers are milk recording but nearly 70% have the necessary equipment to allow for milk recording.  The programme will recruit a number of demonstration farms and research findings will be used to inform all Lakeland milk suppliers. Lakeland Dairies also participate in the Johnes Disease Control Programme with AHI which will become a focus of the Joint Programme

Farm Labour Efficiency and Management - As dairy farms continue to grow their milk production, farmers are increasingly seeing the need to recruit employees onto the farm and this requires a structured process to ensure that it works out successfully both for the farmer as employer and for the new recruit as an employee.  Lakeland has already run workshops on this subject.  The Joint Programme will use pilot farms to explore the benefits of high labour efficiency across a range of farm systems.

Breeding & Genetics will continue to be a prominent part of the Joint Programme. There will also be an environmental sustainability link with other programmes run by Lakeland Dairies incorporating Water Quality, Biodiversity and Environmental Sustainability.

In addition to workshops, farm walks and information, the advisory team also provides a one-to-one service to milk suppliers. The focus here again is on improving milk solids, maximising production from home grown forage, tackling cow infertility and improving grassland management.

Lakeland Dairies’ Chairman, Alo Duffy said,

The Lakeland Dairies / Teagasc Joint Research Programme is a deeply valuable and important initiative. Based on findings from experience on our milk supplying dairy farms, the knowledge that is being developed and the information and advice that we are able to share is excellent.

Anything that improves competitiveness and market returns for dairy farmers is welcome. We are also very grateful to Teagasc for their excellent commitment to the Lakeland programme. We look forward to the achievement of further progress as we continue to advise and support Lakeland dairy farmers.

Pictured left to right are Michael Hanley, Group CEO; Alan McCay, Vice-Chairman; Colin Kelso, Vice-Chairman and Alo Duffy, Chairman of Lakeland Dairies. 

“Together, We’re Stronger”

Lakeland Dairies Co-operative Society Limited and LacPatrick Co-operative Society Limited have today created history by formally completing the merger of the two Societies. The new Society formed by the merger is to be called Lakeland Dairies Co-operative Society Limited and will be known as ‘Lakeland Dairies’. 

Alo Duffy elected Chairman; Colin Kelso and Alan McCay elected Vice-Chairs

A Transitional Board has been established (including Lakeland and LacPatrick Board members) to cover the initial 12-month period post-merger.

At the first Board meeting of the new Society, Alo Duffy, Ballybay, Co. Monaghan was appointed Chairman of the Co-operative together with two Vice-Chairs, Colin Kelso from Omagh, Co. Tyrone and Alan McCay from Dunamanagh, Co. Tyrone.

Michael Hanley, the current CEO of Lakeland Dairies, will continue to serve as the Group CEO in the new Society.

Lakeland Dairies is now the second largest dairy processor on the island of Ireland with a cross-border milk pool of 1.8bn litres, produced by 3,200 farms from a catchment area covering 16 counties. The co-operative will have a combined annual turnover in excess of €1bn.

Alo Duffy, Chairman of Lakeland Dairies said:

“This is a historic and progressive development. The fruits of the merger will be realised as we continue to grow and develop our co-operative for the long-term benefit, sustainability and livelihood of dairy farmers. I welcome all members and milk producers collectively into our new co-operative society. Our mutual progress will be underpinned by the confidence that comes from working together to create a strong and secure future for our dairy farming families and our generations to come.

“The major contribution that we make through our co-operative enterprise, to the economic wellbeing of rural communities and the progress of the dairy industry north and south on this island, will be further strengthened and will continue long into the future.”

Group CEO, Michael Hanley said:

“Together with my management colleagues throughout the business, and under the direction of the current and future Boards of the Society, we are deeply committed to the future success of this enterprise.

Both of the Societies now forming Lakeland Dairies have a proud heritage of excellence in dairy farming. From today, we combine our mutually valued heritage into one. There is no looking back, only a collective movement driving forwards to achieve commonly held goals.

“Lakeland Dairies is farmer owned and farmer controlled and we exist for the benefit of our milk producers.  We are now bringing all of our capabilities together into a single and unified organisation whereby we will create new efficiencies and economies of scale as we continue to serve our valued customers throughout the world.

“We look forward to the future success of Lakeland Dairies as a fully integrated dairy industry player, creating further value for milk producers, with modern processing technologies and enhanced global market access for our high quality dairy products.

“The bringing together of two major organisations is complex. After the intensive activity leading up to the merger, we must now focus all of our energies entirely towards the future success of the combined business. Significant work will have to take place to make the new organisation as efficient as possible and to return the strongest possible milk price back to dairy farmers in line with market conditions. We will leave no stone unturned to ensure that we establish the most effective platform from which to conduct our business in the future.”

The major cross border dairy processing co-operative, Lakeland Dairies turned in an excellent business performance in 2018 with record revenues and profitability, underpinned by targeted business development activity, relative stability in global dairy markets and growth in volumes shipped.

Group CEO Michael Hanley said:

Group Revenues increased by 5.3% from €769.8m to €810.5m, yielding an operating profit of €17.5m (up from €16.8m in 2017). This was driven by strong returns from our three main business divisions where we were also able to capitalise on our significant economies of scale, benefiting from the significant investments of recent years in technology, automation and lean operation across our processing footprint.

Lakeland Dairies concluded the year with a strong balance sheet and shareholders’ funds of €130m, an increase of €12.4m for the year. EBITDA (Earnings before Interest, Taxes, Depreciation & Amortisation) of €33.65m increased by €1.05m in 2018 from €32.6m in 2017, reflecting a consistently high level of operational efficiency and profitability from year to year.

The Food Ingredients Division delivered revenue growth of 4.6% to €489.9m, reflecting the quality, flexibility and reliability of our offer and general buoyancy in the end markets and food manufacturing sectors of our customers. This Division continues to meet key food industry trends with the processing scale and efficiency required to be a best in class global provider of choice across multiple food ingredient categories.

Foodservice Division revenues increased by 3% to €246.9m in 2018, maintaining the very robust platform achieved by a significant growth in sales in the prior year and processing record volumes of value-added products. This is in spite of some volatility including variable consumer sentiment and price sensitivity in key markets which we are managing effectively.

Agri-Trading Division revenues increased by 19% to €73.7m, driven by organic growth where our customers required higher volumes of feed during the year, mainly due to radically variable weather conditions ranging from blizzards to drought. Lakeland supplied feed and fertiliser at the most competitive possible prices to ensure value and performance for dairy farmers.

The merger of Lakeland Dairies and LacPatrick Dairies has recently received all necessary regulatory approvals, following resounding approval by the shareholders of both Societies in October 2018. The new Society – to be called Lakeland Dairies Co-Operative Society Limited – will be the second largest dairy processor on the island of Ireland with a cross-border milk pool of 1.8bn litres, produced by 3,200 farms across a catchment area including 16 counties. The new co-op will have a combined annual turnover in excess of €1bn, creating internationally competitive scale and the opportunity for greater efficiency to be achieved across the amalgamated organisation.

Market conditions for 2019 will be contingent on factors including the still uncertain impacts of Brexit and the overall balance of global supply and demand across our product portfolio. We will meet any potential headwinds by continuing to ensure complete efficiency and flexibility across all of our operations, while at all times paying the highest possible milk price in line with market conditions.

We will always support milk producers to the maximum possible extent. This will continue to be our commitment in the months and years ahead. Let us all re-energise behind the now enlarged enterprise of Lakeland Dairies where, based on the collective achievements of co-operation, we will look forward with confidence to the future.

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Lakeland Dairies Co-operative Society Limited and LacPatrick Co-operative Society Limited have jointly welcomed regulatory approval, for the merger of both Societies, received today from the Competition and Markets Authority (UK) and from the Competition and Consumer Protection Commission (Ireland).

The Competition and Merger Authority (CMA) in the UK and the Competition and Consumer Protection Commission (CCPC) in Ireland have ruled that the merger can now be completed. Both authorities determined and ruled that competition would not be adversely affected as a result of the merger and both cleared the transaction unconditionally.

The regulatory authorities’ clearance was the last significant hurdle for the merger to go ahead. In October 2018, the Lakeland and LacPatrick shareholders voted 97% and 96% respectively in favour of forming one of the largest dairy processors in Europe.

The new Society – to be called Lakeland Dairies Co-Operative Society Limited – will be the second largest dairy processor on the island of Ireland with a cross-border milk pool of 1.8bn litres, produced by 3,200 farms from 15 counties. The new co-op will have a combined annual turnover in excess of €1bn, creating internationally competitive scale while ensuring efficient costs of operation.

Alo Duffy, Chairman of Lakeland Dairies said, “The merger will help us to create efficiencies across our organisation which will enhance value and maximise available market returns for the benefit of milk producers. I express our strong appreciation to the shareholders of both societies for their confidence in this historic development which will underpin the long term sustainability of our dairy farming enterprises for the future.”

Andrew McConkey, Chairman of LacPatrick Dairies said,

We look forward to the continuing future success of Lakeland Dairies as a fully integrated dairy industry player, creating efficiencies and further added value for our milk producers with enhanced global market access for our high quality dairy products. The merger gives our farmers the necessary security to make long-term business decisions and provides stability for continuing progress in dairy farming for the next generation. With a large milk pool and well-invested dairy processing sites on both sides of the border, the new Lakeland will be a co-op of considerable scale. We will work in the long-term best interests of dairy farmers while serving our valued customers with even greater capability and an expanded range of high quality, value-added dairy products.

New Society Start Date

A number of standard legal and administrative procedures will now be completed to enable the new Society to begin trading at the end of March. Until then, the two co-ops will continue to operate independently with each setting its own milk price.

Michael Hanley is CEO Designate of the new Lakeland Dairies and he said:

We’re very pleased to have reached the conclusion of this process which is now a starting point for future significant progress. We are energised and ambitious to create strategic advantages in an intensely competitive market environment where we intend to ensure the best possible realisation of the benefits of this merger for our members and for all of our customers around the world.

My management team and I will get to work immediately in order to drive efficiencies in the business and to make the new co-op a success. Significant work will have to take place to make the new organisation as efficient as possible and to return the strongest possible milk price back to our farmers. The combined businesses have the potential to be one of the powerhouses of the global dairy industry but we must work hard to realise that potential by creating economies of scale and combining our complimentary product mix.  We will leave no stone unturned in continuing the growth, development and success of Lakeland Dairies.

The major cross border dairy processing co-operative, Lakeland Dairies has announced the appointment of Tom Griffin (BBLS) as General Counsel and Company Secretary.

As General Counsel, and reporting to Group CEO Michael Hanley, Mr. Griffin will provide legal advice across the Group on every aspect of corporate, business and commercial law in support of the Society’s ongoing growth and development.

As Company Secretary he will lead the Corporate Governance function across the Group reporting to the Chairman and Board of the Society while ensuring compliance with all statutory and regulatory requirements.

Griffin is a highly experienced corporate and commercial lawyer, having worked most recently as a Corporate Commercial Solicitor with AIB Bank for over 7 years. Prior to this, he was a Solicitor with KPMG’s Corporate Legal Advisory Department specialising in Corporate, Commercial and Employment Law.

Mr. Griffin studied Business and Legal Studies at University College Dublin, trained at Byrne Wallace Solicitors and qualified through the Law Society of Ireland in 2005. He was also admitted to the Roll of Solicitors in England and Wales in 2011 and was awarded an Advanced Diploma in Corporate Law from the King’s Inns in 2015.

In the role of Company Secretary, Griffin succeeds Mr. Michael Ryan who is retiring as Company Secretary following a career of excellent commitment and contribution to Lakeland Dairies spanning over 20 years including formerly the role of Financial Controller of the Co-operative.Welcoming Tom Griffin’s appointment, Lakeland Dairies’ Chief Executive, Michael Hanley said,

“I welcome Tom to the senior leadership team. He has an excellent track record in corporate governance and legal practice which will contribute strongly to our ongoing growth and development as we continue our progress in an increasingly globalised and often complex business environment.”

Lakeland Dairies is a farmer owned dairy processing co-operative with operations across 15 counties on a cross border basis. Lakeland collects and processes over 1.2 Billion litres of locally produced milk each year into a wide range of value-added dairy foodservice and food ingredient products which it exports to more than 80 countries worldwide.

Bord Bia Origin Green Farmer Awards National Winners in the Dairy Category for Small/Medium Herd, Lakeland Dairies' milk suppliers Mairead & Pat McLoughlin from Rath, Birr, Co. Offaly receive their presentation from Bord Bia CEO Tara McCarthy, and Chairman Dan MacSweeney at the Bord Bia Origin Green Farmer Awards, to honour Ireland's most sustainable, efficient and environmentally friendly family farms. Picture by Finbarr O'Rourke.

In a statement issued by Lakeland Dairies, the Chairman, Board and Management of the co-operative have expressed their pride in milk supplying dairy farmers Mairead and Pat McLoughlin of Birr, Co. Offaly who have been identified as ‘Champions of Sustainability’ having won the overall Small/Medium Herd Category of the Bord Bia Origin Green Farmer Awards.

The McLoughlins emerged as overall national winners from a shortlist of 15 dairy finalists selected from 16,200 dairy farmers who are members of the Bord Bia Sustainable Dairy Assurance Scheme.

This is  not the first time that the McLoughlins have won accolades for the high quality of their dairy farming. Earlier this year they won the Lakeland Dairies Milk Quality Award for Sustainability for their outstanding commitment to sustainable milk production, based on measures including carbon footprint, biodiversity, water management and milk quality results.

The McLoughlins currently milk 56 cows with plans to increase this number to 66. They are new entrants to dairying having taken over from Mairead’s father, Michael Gleeson, in 2014. The judges found that thanks to their dedication to measuring performance on-farm they have achieved excellent farm sustainability. The importance of animal health and welfare also stood out for the judges.

The Origin Green Farmer Awards recognise and reward the exceptional performance being achieved by members of its Sustainable Quality Assurance schemes for beef, horticulture and dairy. These schemes are pivotal to differentiating Irish food products in the global marketplace. Participating farms meet high standards around hygiene, farm safety, traceability, animal welfare, remedy use and commitment to their locality.

Paying tribute to Mr. & Mrs. McLoughlin, Lakeland Dairies’ Chairman Alo Duffy said,

Lakeland Dairies understands our farmers’ position as guardians of the countryside and we know that farming is at the heart of thriving rural communities. We work with our members to develop farm based initiatives to enhance farm profitability and environmental protection and we prioritise environmentally efficient manufacturing at our processing facilities.

Mairead and Pat McLoughlin are exemplary of both the very best traditions and the advanced modern day practices of dairy farming and they are also exemplary of the excellent milk supply base and high quality dairy farmers who we are fortunate to have across our entire catchment areas in Lakeland Dairies.

The markets that we deal with are largely demand led, with multiple supply channels for customers and consumers to choose from.  They want products that are safely, securely and sustainably produced and we need to be able to verify that this is the case to the satisfaction of our international customers. The milk we collect for processing, produced from pasture fed herds on family owned farms, is the high quality raw material on which we have built our reputation as a global dairy provider.

Lakeland Dairies is a farmer owned dairy processing co-operative with operations across 15 counties on a cross border basis. Lakeland collects and processes over 1.2 Billion litres of locally produced milk each year into a wide range of value-added dairy foodservice and food ingredient products which it exports worldwide.

 

As dairy farms continue to grow their milk production, farmers are increasingly seeing the need to recruit employees onto the farm and this requires a structured process to ensure that it works out successfully both for the farmer as employer and for the new recruit as employee, a new Labour Management course being run by Lakeland Dairies in conjunction with Teagasc and Macra Skillnet has advised.

Some 20 Lakeland milk producers have been participating in the course over the past four weeks. It was led by a well-known expert in this area, Dr. Nollaig Heffernan, who specialises in management, leadership and organisation. It was also delivered by Co-ordinators from the Lakeland Dairies / Teagasc Joint Programme and representatives from the Workplace Relations Commission.

The issue of Labour Management in farming is highly topical.  In a recent survey it was identified that over 93% of Lakeland milk suppliers have said they will stay in milk production for the future. In addition to farmers who have significantly grown their output, Lakeland milk suppliers said they will further expand their milk production by approximately 5% in each year to 2022.

This raises important issues around the provision of labour to cope with this expansion as, in general, farmers need to pursue a business model that is sustainable and that also enables them to establish an appropriate work-life balance.

In a recent survey it was identified that just over one-third of Lakeland milk suppliers currently employ staff on their farms. Of these, 8% employ staff on a full time basis and 28% on a part time basis. Two-thirds of Lakeland milk suppliers do not currently employ any labour on the farm, other than the family’s own inputs.

Lakeland Dairies’ Member Relations Manager, Eamonn Duignan said,

The Lakeland Labour Management course in conjunction with Teagasc and Macra Skillnet covers a wide range of labour management issues including how to determine what new skills are required, how to go about hiring staff and the induction process. It’s essential to get the right person for your farm.  The course provides information on how to go about an employee search including advertising in relevant places and interview skills. It also covers employment law and how to provide appropriate working terms and conditions.

Effective communication with employees is also essential so that they can understand how the farm works and what is reasonably expected of them. The participants in the course have found it highly informative and beneficial and this will provide them with the confidence to plan for and create employment opportunities on their farm. 

Bringing in a new employee for the first time does add a further layer into the management of the farm but the benefits of additional labour far outweigh the possible stress of ‘going it alone’ which can, in itself, constrain the progress and success of a growing farm. The course also covers interpersonal skills including how to manage and motivate staff and the establishment of ongoing working relationships that work well for both the employer and employee. It helps farmers to understand their own recruitment needs and to adapt their management style to create the best possible outcome for their dairy business.

Half of all Lakeland milk suppliers said they have identified a successor to take over their dairy business. The majority of successors (80%) are all under 35 years of age and the vast majority of these have already received training ranging from the Green Cert to a Primary Degree in Agriculture.

The Labour Management Course is a further initiative in a series of Lakeland Dairies programmes designed to support milk producers. Lakeland Dairies and Macra na Feirme also recently launched a new Land Mobility Programme. The innovative new initiative will help all types of farmers, farm families, new entrants and land owners to consider their options for collaborative arrangements leading to better use of land resources for the mutual benefit of farmers and land owners. The programme is working to facilitate workable arrangements throughout the Lakeland Dairies catchment area.

Farmer owned 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. Lakeland has a portfolio of 240 different dairy products which it exports to 80 countries worldwide.

Pictured (left to right): Alf McGlew, Dairy Farmer; Austin Finn, Land Mobility Programme Manager; Alo Duffy, Chairman Lakeland Dairies; Patrick Brady, Land Mobility Programme Advisor for the Lakeland Dairies catchment area; Andrew Purcell, Dairy Farmer and Eamon Duignan, Member Relations Manager, Lakeland Dairies.

Lakeland Dairies and Macra na Feirme have launched a new Land Mobility Programme. The innovative new initiative will help all types of farmers, farm families, new entrants and land owners to consider their options for collaborative arrangements leading to better use of land resources for the mutual benefit of farmers and land owners. The programme will work to facilitate workable arrangements throughout the Lakeland Dairies catchment area.

The Land Mobility Programme is a confidential and expert service designed to support the sustainable expansion of dairy farming throughout the Lakeland operating region, where the majority of dairy farmers see opportunities for further growth in the years ahead. The programme will also provide advice and assistance to farmers who may be thinking of adjusting their workload, stepping back or making succession arrangements on their farms while also seeking to secure their income for the future.

Macra na Feirme will co-ordinate the new service with ongoing support from Lakeland Dairies and the FBD Trust. It will be managed on the ground by Patrick Brady who has been appointed as the Programme Co-ordinator in the Lakeland Dairies catchment area. Brady has significant farming and business experience. He holds an Agricultural Science Degree from UCD, is a dairy farmer himself and has significant experience with Teagasc. As Programme Co-ordinator, he can be contacted at 087 1628839.

The Land Mobility Service has been successfully piloted over the past 4 years in Ireland, supporting the establishment of over 400 collaborative arrangements between farmers and covering some 35,000 acres of land.

The new Lakeland Land Mobility Programme was launched at the farms of Alfred McGlew and Andrew Purcell who established a farming partnership on their neighbouring farms over a decade ago in Termonfeckin, Co. Louth. Mr. Purcell and Mr. McGlew entered into a collaborative arrangement to create a combined dairy farming enterprise for their mutual benefit. In 2006, both farms were milking 70 cows each and now, in partnership, McGlew & Purcell are milking 330 cows this year. As well as their business agreement, they established specific plans for their farming including the sharing of various jobs and tasks necessary to run their farms. Their combined farms have also since developed into a company which helps the overall administration of the dairying business.

The Land Mobility Service is provided to farmers and land owners on a strictly confidential and individual basis. It will help farmers and land owners to explore their options and put compatible farmers in contact with each other with a view to progressing a mutually agreeable working arrangement.

The arrangements can be as simple or as complex as people want, provided they are workable for all parties involved. Arrangements can be in or outside the family. For an arrangement to work it will typically need to underpin income security and enhancement and be tax efficient while protecting assets and EU entitlements. Identifying and agreeing on the land to be farmed is also very important and the programme also seeks to deliver quality of life and social benefits for the parties involved.

The types of arrangements available within the programme include long term leasing, partnerships and share farming.  Additionally farmers can also consider farm to farm co-operation including contract rearing, grazing and silage arrangements and cow leasing.

Macra na Feirme’s Programme Manager for the Land Mobility Service Austin Finn said,

The original Land Mobility initiative has proven to be a great success since its introduction in 2014. The reason the Land Mobility Initiative works for people is because it keeps people involved at the heart of any arrangement and we are delighted to be working with Lakeland Diaries in this new innovative land mobility programme for members and milk producers.

Lakeland Dairies’ Chairman Alo Duffy said,

The Land Mobility Programme is about providing choice and opportunities to dairy farmers around a range of options which they can consider to secure the future of their farming enterprises and their livelihoods. This can be focused on the continuing growth of milk production, the sharing of responsibilities and benefits arising from a farming partnership, or it can involve leasing or other collaborative arrangements. The Land Mobility Programme unlocks resources, efficiencies, cost savings and income for farmers working co-operatively together and Lakeland Dairies is delighted to launch this initiative in co-operation with Macra na Feirme.

 

In a recent survey, over 40% of Lakeland milk suppliers said they are interested in establishing a Farm Partnership either externally or among family members.  

Just over one-third of dairy farms supplying Lakeland Dairies employ staff on either a full-time (8%) or part-time (28%) basis. Two-thirds of milk suppliers do not employ any labour on the farm, other than the family’s own inputs, a finding which supports the potential for collaborative farming arrangements.

In addition to farmers who have significantly grown their output, roughly half of Lakeland milk suppliers said they will further expand their milk production by approximately 5% in each year to 2022.

PICTURED (l/r) are: Andrew McConkey, Chairman, LacPatrick Dairies; Michael Hanley, CEO, Lakeland Dairies and Alo Duffy, Chairman, Lakeland Dairies.

At their respective SGMs held this afternoon, shareholders of dairy processing co-operatives Lakeland Dairies and LacPatrick Dairies have voted resoundingly in favour of the merger of both Societies. Lakeland shareholders met in Cavan and LacPatrick shareholders met in Cookstown, Co. Tyrone.

 The ballots of each society were conducted independently by the Irish Co-operative Organisation Society (“ICOS”).

•  97.24% of shareholders of Lakeland Dairies voted in favour of the merger.
•  95.99% of shareholders of LacPatrick Dairies voted in favour of the merger.

 Alo Duffy, Chairman of Lakeland Dairies said, “The shareholders of both societies have created a great good for co-operative dairy farming. By combining our co-operatives and operations, we will continue our strong progress in a very meaningful way. The new society being formed through this merger will continue to be farmer owned and controlled while paying a sustainable and competitive milk price in line with market conditions into the future.”

Andrew McConkey, Chairman of LacPatrick Dairies said, “By voting in favour of the merger, we are confident that both the LacPatrick and Lakeland shareholders have created a sustainable platform for dairy production in the northern half of the country. This will create stability, scale, efficiency and further added value for our milk producers together with enhanced global market access for our high quality dairy products.

Michael Hanley, CEO of Lakeland Dairies and Group CEO Designate of the News Society said,

Underpinned by the confidence shown by the members of each co-operative, the combined organisation will be a competitive, international dairy food business which will work as a platform to secure the future of our dairy farmer members for generations to come. It will deliver economies of scale and commercial synergies, processing increased volumes of milk and providing greater capability to address global customer needs for high quality dairy foodservice, food ingredients and consumer products.

 Subject to the necessary regulatory approvals, it is envisaged that the merger will be completed early in 2019. The new society will adopt the name of Lakeland Dairies. With 3,200 suppliers, the merged co-operatives will process over 1.8 billion litres of milk annually and will have annual revenues of over €1 Bn. The combined organisation will have substantial cashflow to underpin the development of the business. It will also create efficiencies across the organisation and its operations which will enhance the value and return from the merged societies for the benefit of milk producers.

 

PICTURED (l/r) are: Andrew McConkey, Chairman, LacPatrick Dairies; Michael Hanley, CEO, Lakeland Dairies and Alo Duffy, Chairman, Lakeland Dairies. 

Merger will underpin a sustainable and competitive milk price for thousands of dairy farming families north and south.

Lakeland Dairies and LacPatrick Dairies have reached agreement to merge following the unanimous approval of the Boards of both co-operative societies who are recommending the proposed merger to their respective shareholders. 

Exclusive discussions about a possible merger started last June and have reached a positive outcome where the Boards of both societies are unanimously recommending shareholders to vote in favour of the merger at Special General Meetings which will be held on Tuesday 23rd October next. Regulatory approval will also be required.

Lakeland Dairies and LacPatrick Dairies are neighbouring societies and both operate on a cross border basis exporting the vast majority of their output to global markets.  Each has a heritage of excellence in co-operative dairy farming spanning well over a century and share common business development aims in the interests of their shareholders, milk producers and rural communities.

The amalgamation of Lakeland and LacPatrick is a coming together of two dairy co-operatives on the island of Ireland to form a strong force in the global dairy industry. Both co-operatives are highly successful agrifood industry players with excellent manufacturing facilities and complementary strengths and advantages in their various worldwide markets.

As an absolute priority, the combined new co-operative will work to support dairy farming families on a long term basis into the future by maximising market returns and paying a sustainable and competitive milk price in line with market conditions.

Owned and controlled by farmers, with over 3,200 milk suppliers and a collective milk pool of some 1.8bn litres, the new co-op will be the second largest dairy processor on the island of Ireland. It will have a combined annual turnover in excess of €1bn, creating internationally competitive scale while ensuring efficient costs of operation.

The announcement was made jointly by the Chairman of LacPatrick Dairies, Andrew McConkey and the Chairman of Lakeland Dairies, Alo Duffy, together with Michael Hanley, CEO of Lakeland Dairies who will be appointed Group CEO of the new merged co-operative society which will adopt the name of Lakeland Dairies.

Andrew McConkey, Chairman of LacPatrick Dairies said, “The Board of LacPatrick firmly believes that an amalgamation with our neighbours in Lakeland Dairies is the best thing for our milk suppliers, shareholders and customers. It gives our farmers the necessary security to make long term business decisions and provides stability for continuing progress in dairy farming for the next generation. The Board of LacPatrick is unanimously recommending our shareholders to approve this merger at our forthcoming SGM. With an enlarged milk pool and well invested dairy processing sites on both sides of the border, the new co-operative will be a co-op of scale working in the long term best interests of dairy farmers, ensuring global market access and serving our valued customers with an even greater capability and an expanded range of high quality, value-added dairy products.”

Alo Duffy, Chairman of Lakeland Dairies said,

“This merger proposal is a once in a lifetime opportunity for both co-operatives to continue their strong progress in a very meaningful way. Both societies are committed to the long term wellbeing and economic success of dairy farming, milk producers and rural communities.  The proposed merger will uphold these values and will lead to further scale, strength and sustainability for milk producers. It will enable us to process all of the milk sent to us, including the expanding output of our dairy farming members. It will create economies of scale and will secure our channels to global markets on a stronger, substantial and even more sustainable basis for the future. The Board of Lakeland Dairies is unanimously recommending the merger to our shareholders.”

Michael Hanley, CEO of Lakeland Dairies said,

“I am confident that the best interests of the shareholders and milk producers of both societies will be best served through this merger. The economies of scale achievable by combining both societies will create a larger, more efficient, diversified, farmer controlled, global dairy food group with a broad portfolio of value-added products and brands. Both co-operatives have excellent facilities, technologies and resources with strong synergies across our milk processing footprint and in the markets we serve at home and abroad. We will be able to expand the potential of our overall portfolio of products, covering Food Ingredients, Foodservice and Consumer Foods. The business will have considerable potential to increase revenues and generate the cost savings necessary to ensure competitive milk prices for our dairy farmers in the future. It will continue to ensure market access to the United Kingdom, Europe and the world. The combined organisation will have substantial cashflow to underpin the development of the business. All of these factors will enhance the value of the merged societies for the benefit of all shareholders and milk producers.”

 

Lakeland Dairies will hold its SGM in Cavan and LacPatrick Dairies will hold its SGM in Cookstown, Co. Tyrone at 1.00 pm on Tuesday 23rd October, 2018. Both co-operatives have written to their respective shareholders with details of the merger and will also hold a series of information meetings in advance of the SGMs across several counties, north and south. The Boards of both co-operative societies are unanimously recommending shareholders to vote in favour of the merger.

Her Royal Highness, Anne, The Princess Royal has officially opened a major new automated packing facility at Lakeland Dairies in Newtownards following a £5m investment by the farmer owned co-operative which has been supported by Invest NI.

The state-of-the-art new facility further enhances the capabilities of this major dairy processing site which plays a key role in the Foodservice Division of Lakeland Dairies.  The opening of the £5m new Packing Hall is part of an overall £27m investment by Lakeland Dairies in Newtownards over the past 10 years. It follows the opening in 2015 of a major new Global Logistics Centre in Newtownards which is among the most technically advanced global export facilities in Europe.

The co-operative has a particularly strong track record of international sales growth as a result of investment and innovation with exports from Northern Ireland worth some £170m annually. Further growth is predicted over the next 5 years with a particular focus on Asian Pacific, Middle Eastern, African and American markets.

Lakeland Dairies brings together over 750 family farms producing 600 million litres of high-quality, sustainable, pasture-based milk in Northern Ireland. The co-operative employs 225 people at Newtownards and the operation supports some 700 further jobs among suppliers and contractors across Northern Ireland.

The Princess Royal was received on arrival by the Lord Lieutenant of County Down, David Lindsay and greeted by senior representatives of the co-operative including Chairman, Alo Duffy and Group CEO Michael Hanley. 

After touring the new facility, Her Royal Highness met members of the Board of Lakeland Dairies, the staff of the co-operative and other guests including senior executives of Invest NI and DAERA. The Princess Royal then unveiled a specially commissioned plaque to mark her opening of the new facility.

Alo Duffy, Chairman of Lakeland Dairies said,

“The driving aim of Lakeland Dairies is to create a vibrant and sustainable future for co-operative dairy farmers and to support them with the highest possible milk prices in line with market conditions. We are also intent on promoting the wellbeing of rural communities and the environment in which we operate. The opening of these excellent new facilities by The Princess Royal provides great encouragement for our co-operative ideals of Better Farming, Better Business and Better Living for all of our milk producers and the provision of exceptional service and delivery for our customers throughout the world.”

Michael Hanley, Group CEO of Lakeland Dairies said,

“Lakeland Dairies is an internationally recognised supplier of superb dairy ingredients and foodservice products underpinned by outstanding, high quality raw materials in the milk that our dairy farmers send to us for processing. We serve the dairy product needs of leading customers in key food industry sectors worldwide. Together with modern, large scale processing facilities and a highly skilled workforce, we are addressing many opportunities for growth and development in line with continuously strong global demand for dairy products.  Our Newtownards base will continue to play a key role in the ongoing export success of Northern Ireland long into the future.

The boards of LacPatrick Dairies and Lakeland Dairies have agreed to enter into exclusive discussions regarding an amalgamation of the two Societies.

Any agreement reached, will be subject to shareholder approval and the relevant regulatory clearance.

A dairy farmer from Donadea in north Co. Kildare has been crowned the Lakeland Dairies Supreme Milk Quality Award Winner. Andrew and Miriam Bennett emerged as the cream of the crop from among 2,500 milk producers supplying a total of 1.2 Bn litres of milk annually to Lakeland Dairies, across 15 counties north and south.

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.

The awards were presented by Business Enterprise and Innovation Minister, Heather Humphreys T.D., together with Lakeland Dairies’ Chairman Alo Duffy and Group CEO, Michael Hanley at a special ceremony held in Cavan. Winning a milk quality award is a major achievement. Awards were presented in a number of categories.

Winners:

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Supreme Milk Quality Awards  - Andrew and Miriam Bennett, Donadea, Co Kildare, won the 500,000+ Litres milk production category and were also crowned Supreme Milk Quality Awards Winners. Pictured (L-R) Michael Hanley, Chief Executive of Lakeland Dairies, Miriam Bennett, Minister for Business, Enterprise, and Innovation Heather Humphreys TD, Andrew Bennett, Alo Duffy, Chairman of Lakeland Dairies and David Gunn, Easyfix.

Winston and Jonathan Morrison of Killeshandra, Co. Cavan, were the overall runners-up the 500,000+ litres milk production category for the exceptionally high quality of milk produced on their farm, pictured centre with Business, Enterprise and Innovation Minister Heather Humphreys, T.D.,  Michael Hanley, CEO and Alo Duffy, Chairman of Lakeland Dairies.

Frank and Mary Evans Stranooden Co. Monaghan, won the 0 – 500,000 litres milk production category, for the exceptionally high quality of milk produced on their farm, pictured centre with son Conor, Minister for Business, Enterprise and Innovation, Heather Humphreys T.D., Michael Hanley, CEO (left) and Alo Duffy (right) Chairman of Lakeland Dairies.

Byrd, Kilnaleck Co Cavan, was the overall runner-up in the 0 – 500,000 litres milk production category for the exceptionally high quality of milk produced on his farm, pictured centre with his daughter Caoimhe, Michael Hanley, CEO (left) and Alo Duffy (right) Chairman of Lakeland Dairies.

John & Conor Spollen from Glasson, Athlone Co. Westmeath were named the Best New Entrants to Dairy Farming for the exceptionally highquality of milk produced on their farm. Conor received the award together with his mother Hazel pictured (centre) with Business, Enterprise and Innovation Minister Heather Humphreys T.D.,Michael Hanley , CEO (left) and Alo Duffy, Chairman (right) of Lakeland Dairies.

Derek Dunn, Donemana, Co. Tyrone was named the Best New Entrant to Dairy Farming in Northern Irelandfor the exceptionally high quality of milk produced on his  farm, pictured centre with Michael Hanley, CEO; Colin Kelso, Vice (left) and Alo Duffy, Chairman (right, of Lakeland Dairies.

At the Lakeland Dairies Milk Quality Awards, Sam and John McCormick Bangor, Co. Down, won the 1M+ litres milk production category for the exceptionally high quality of milk produced on their farm. John and Patricia McCormick (centre) are pictured with Michael Hanley, CEO; Colin Kelso, Vice-Chairman (left) and Alo Duffy, Chairman (right, of Lakeland Dairies.

Ivan and David Dunwoody Milford, Co. Armagh, were the overall runners-up in the 1M+ litres milk production category for the exceptionally highquality of milk produced on their farm.  The Dunwoody family Linda, David, Ivan, Jonathan and Annabelle are pictured with Lakeland Dairies’ CEO Michael Hanley (centre); Colin Kelso, Vice Chairman (left) and Alo Duffy, Chairman (right).

Martin Lappin, Tynan, Co. Armagh, won the 0 – 1M litres milk production category for the exceptionally high quality of milk produced on hisfarm. L-R Colin Kelso, Vice Chairman with Michael Hanley, CEO of Lakeland Dairies; Martin Lappin, Maureen Lappin and Alo Duffy, Chairman, Lakeland Dairies.

 

At the Lakeland Dairies Milk Quality Awards William and Alec McCullough, Hollywood, Co. Down were the overall runners-up in the 0 - 1M litres milk production category for the exceptionally high quality of milk produced on their farm.  Pictured L-R: Colin Kelso, Vice-Chairman; Alec McCullough with CEO Michael Hanley, William McCullough, Faith McCullough and Lakeland Dairies’ Chairman, Alo Duffy.

Congratulating the winners, Minister Humphreys said:

Over the next five years, Ireland will continue to be among the world’s fastest growing dairy producers as a global leader in terms of the safety, sustainability and traceability of our production from family farms, through our processing facilities and onwards to consumers in markets across the world. The winners of these awards are exemplary because, through their dedication and commitment, they are supporting our country’s justified and hard earned worldwide reputation for quality. Based on these achievements, I am confident that we will continue to be competitive and successful and I congratulate all of the members of Lakeland Dairies for the great progress that is being achieved by this farmer owned co-operative.

Lakeland Dairies Chairman Alo Duffy said:

The milk quality awards are a source of great pride because they centre on excellence in dairy farming. The markets that we deal with are largely demand led, with multiple supply channels for customers and consumers to choose from.  They want products that are safely, securely and sustainably produced and we need to be able to verify that this is the case to the satisfaction of our international customers. The milk we collect for processing, produced from pasture fed herds on family owned farms, is the high quality raw material on which we have built our reputation as a global dairy provider.

Lakeland Chief Executive Michael Hanley said:

Lakeland Dairies’ milk producers are well placed to cater for global dairy demand as a result of the overall efficiency and sustainability of our production and processing systems. We have made strategic investments to create the scale and flexibility that are necessary to compete successfully on a worldwide basis. The quality of our dairy farmers and the milk that they supply to us is simply world class. That is what underpins our opportunity for future growth as a farmer owned co-operative exporting 240 different dairy products and food ingredients to customers in 80 countries worldwide

Lakeland Dairies has reported strong financial results for the year ended 31^st December 2017, with group annual revenues increasing by 28% to €769.8m, up from €601 million in 2016. This yielded an operating profit of €16.8m, compared to €7.2m in 2016.

Profit before tax was €15.9m in 2017 and the co-operative closed the year with a 15% increase in shareholders’ funds at €117.6m. Earnings before interest, depreciation, tax and amortisation (EBIDTA) were €32.6m, increasing significantly from €18.9m in 2016.

Milk volumes processed in 2017 increased to over 1.2 bn litres, reflecting ongoing expansion among Lakeland Dairies’ 2,500 milk producers and a full year of milk supply from Fane Valley Dairies, which was acquired in May 2016. The efficiencies being achieved through all operations enabled the removal of milk collection charges (cartage), with an overall reduction of costs of €5 million to milk suppliers annually.

Farmer owned 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. Lakeland has a portfolio of 240 different dairy products which it exports to 80 countries worldwide.

Commentary - By Division

FOOD INGREDIENTS €468.4M - Lakeland Dairies’ Food Ingredients revenues increased by 32% to €468.4m in 2017, up from €353.6m in 2016.

This performance was driven by strong business development activity and a resurgent demand from food manufacturers for high quality, functional dairy ingredients combined with favourable market conditions. The Bailieboro Dryer No. 3 development was officially opened in 2017 with additional upgrades to R&D, milk intake, storage and separation facilities at the site. Overall, the Bailieboro site produced record volumes of over 200,000 tonnes of milk powders and butter products for worldwide export during the year.

FOODSERVICE €239.8M - Revenues at the Lakeland Foodservice Division increased by 23% to €239.8m in 2017, up from €194.1m in the previous year.

The major Lakeland processing centres at Killeshandra and Newtownards continue to increase output year on year, producing record volumes of butter products, ice cream, cream and cream blends. The long standing reputation of Lakeland Dairies’ products for quality, taste, functionality and reliability underpinned the confidence being demonstrated by customers in key markets such as the UK, Middle-East, Europe, Asia and China. These markets performed well against a backdrop of volatile commodity input costs, the need to increase selling costs and intense competition.

AGRIBUSINESS €61.7M - Agribusiness revenues increased by 16% to €61.7m in 2017, up from €53.3m in 2016.

This increase was driven by record sales of over 200,000 tonnes of high quality feed and 25,000 tonnes of fertiliser. Reflecting an overall improvement in dairy market conditions, and unfavourable weather, many farmers provided supplementary feeding in addition to grazing to boost milk output by their herds. During 2017, Lakeland Dairies launched a number of initiatives to support Agri producers and customers, including the Lakeland Agri Loyalty Programme and the Lakeland Deferred Fertiliser Payment Scheme. 2017 also saw the commencement of an upgrade programme at the Lough Egish Mill, which will include new technology and an expansion in manufacturing capacity to meet future operational and performance needs.

Michael Hanley, Group Chief Executive, said:

“In 2017, Lakeland Dairies achieved performance improvements across all divisions of the business. Trading conditions were helped by a reduction in global milk supplies and product availability. We were able to take advantage of these conditions through our efficient processing capabilities and worldwide market presence, achieving satisfactory results.

“Our global growth has been driven by our strategy, investments, product range and the high quality output of our milk producers. While there are challenges in the global market, it is our intention to continue to drive competitiveness and overall growth, targeting opportunities across infant formulas, dairy proteins and health-related nutritional products.

“With the investments we have made, we are now in a position to process more milk than ever before. Our five year strategic plan envisages Lakeland Dairies achieving sustainable, profitable annual revenues of over €1bn by 2021. This will require a specific focus on business performance improvements through continuous innovation, organisational development and further enhancements in operational efficiency.”

Alo Duffy, Chairman of Lakeland Dairies said:

“Lakeland Dairies is growing and well positioned for future developments that will benefit our milk producers. Supplier research undertaken in 2017 indicates that our milk producers will continue to expand output by 4-5% annually over the next five years. We also welcomed 30 new entrants to milk production during 2017 (totalling 200 new entrants since 2013). This continued growth has been driven by strategically guided programmes and initiatives that have yielded efficiencies across our operations, increased volumes and enhanced the overall quality of our offering. Our strategic priority will always be to achieve sustainable profitable dairy farming and we believe that we are well positioned to remain resilient and to achieve future success in the long-term.”

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(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.

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 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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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 7^th April, 2017.

Lakeland Dairies is an equal opportunities employer.

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.

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.

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:

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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 

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.

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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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.

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.

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.

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 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.”

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 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 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, 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.

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, 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.”

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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