Dairy farmers agree merger of LacPatrick and Lakeland co-ops

FARMERS at two all-island dairy co-ops which draw milk from around 1,300 Northern Ireland farms have voted overwhelmingly in favour of a tie-in.

The decision by farmer members of LacPatrick Dairies and Lakeland Dairies to back the merger will create the second-largest dairy processor on the island, with a milk pool of 1.8bn litres.

And the head of Lakeland said it would pay a “sustainable and competitive milk price in line with market conditions”.

The votes were cast by larger-than-expected turnouts of farmers at a Special General Meeting (SGM) for LacPatrick members held in Cookstown, Co Tyrone, while LacPatrick members also voted in favour at their meeting in Cavan. The ballots were conducted by the Irish Co-operative Organisation Society, which reported that 97.24% of Lakeland members voted in favour, while 95.99% of LacPatrick farmers gave the thumbs-up.

The newly-merged entity will be known as Lakeland Dairies, with 3,200 suppliers creating a milk pool second in size to Glanbia, which has 2.5bn litres.

There are around 600 Northern Ireland suppliers to Monaghan-based LacPatrick, and 750 which supply milk to Cavan-based Lakeland.

But it was announced that there would be “efficiencies” across the organisation to improve value and return for producers.

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.”

The merger is the latest shakeup and change of name for LacPatrick suppliers. Three years ago Town of Monaghan Co-op took over Ballyrashane Creamery in Co Antrim, leading to a rebrand as LacPatrick.

Last year LacPatrick unveiled a £30m “Brexit-proofing” technology centre for the production of milk powders in Strabane, Co Tyrone. Lakeland also owns the Pritchitts processing centre in Newtownards, Co Down.