Irish dairy company Lakeland has announced that it has reached an agreement for a merger with LacPatrick Dairies after unanimous approval from the boards of both co-operatives.
The combined co-operative will focus on supporting dairy farming families on a long-term basis by maximising market returns and paying a sustainable and competitive milk price in line with market conditions.
Chairman of LacPatrick Dairies, Andrew McConkey, said, “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.”
Role Of Shareholders
The merger proposal will now go before the farmer shareholders of the co-operative for a vote on 23 October in a special general meeting.
The Irish Farmers' Association has stressed that both co-operatives must ensure that farmer members are fully informed about the detailed provisions of the merger before the day of voting.
The final decision on the merger will be subject to a regulatory approval.
'Once In A Lifetime Opportunity'
The merger is being seen as the coming together of two like-minded businesses that will strengthen their position in the global dairy market.
Chairman of Lakeland Dairies, Alo Duffy, 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. […] 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.”
With more than 3,200 milk suppliers and a collective milk pool of some 1.8 billion litres, the new co-operative will be the second largest dairy processor in Ireland.
It will have a combined annual turnover in excess of €1 billion, creating an internationally competitive scale while ensuring efficient costs of operation.
Lakeland Dairies and LacPatrick Dairies are neighbouring societies, and have been exporting a vast majority of their output to the global markets.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
