Lakeland Dairies to close three factories

A spokesman for the firm explained the closures came after “detailed and careful consideration” to enhance processing efficiency. He added that future investments will be made at the retained sites focusing on value-add capability and maximising returns for the 3,200 farming families supplying its 2bn litre milk pool.

The changes, which are expected to be completed by April 2025, will see liquid milk production transfer from Lakeland Dairies Monaghan to Lakeland Dairies Killeshandra. Eventually, all other bulk milk handling activities will also transfer to other Lakeland Dairies sites, resulting in the plant’s closure and sale in 2025.

Milk drying facilities at Lough Egish, also in Co Monaghan, will close in June 2024. Milk will continue to be processed at other sites, namely Lakeland Dairies Bailieboro, Killeshandra, Newtownards, Ballyrashane and Artigarvan. A spokesman added that the closure of the drying facility would have no impact on the Lakeland Agri feed and inputs operations at the neighbouring Lough Egish feed mill.

The Lakeland Dairies site in Banbridge, Co Down, which has acted as a butter churning and packing and powder storage site, will close in June 2024, although no milk has been directly processed there for many years. A process to sell the Banbridge site is expected to commence shortly.

The firm’s group CEO Colin Kelly said: “The industry has come through a period of significant volume growth following the removal of milk quotas in 2015. Lakeland Dairies invested over €350m to support the ambition of our farm families to produce this additional milk and meet the latent demand at farm level for expansion. The next decade will be less about large volume growth and more about value-added growth and adding capability throughout the business. This will be done to drive the best possible returns for our farmers and to continue to offer our loyal customers the highest-quality products while supporting our people and our communities.

“We do appreciate that this announcement creates uncertainty for our colleagues and their families. We will work closely with them and support them throughout this process, in which they will continue to be treated fairly and with respect. While this is a difficult decision, it is a crucial one to ensure that Lakeland Dairies is future-proofed and well-positioned to meet the challenges as well as the opportunities of the future.”