September 9, 2019

Lakeland Dairies announces rationalisation of processing facilities in Monaghan, Ireland



In end-August, Irish dairy processing co-op Lakeland Dairies announced a plan for the adjustment of processing activities on its site in Monaghan, Ireland.

The 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, Lakeland said.

Since the merger of LacPatrick Dairies and Lakeland Dairies was completed in April this year, a review has been conducted on how best to integrate the functions of all sites in order to best support the 3,200 farm families linked to Lakeland.

Prior to the merger, the Monaghan site, a part of the LacPatrick Dairies business, had significant and recurring losses, according to Lakeland. The site has had little or no investment in processing capabilities over the years, the co-op claimed.

"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," said Michael Hanley, CEO of Lakeland Dairies.

"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."

Hanley added that several redundancies "will be required in Monaghan. The co-op will also be providing information on possible redeployments to "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," Hanley stated.

He also highlighted: "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."

Hanley commented that maintaining profitability at all its sites is a "core strategy" of Lakeland Dairies as it seeks "to meet the demand of a competitive global dairy market while protecting the future of our 3,200 farm families."

- Lakeland Dairies