News Dairy
Irish dairy processors to merge on Brexit day
Lakeland Dairies and LacPatrick Dairies will merge on Friday March 29, 2019. It is striking that they have chosen this date, given that it is the same day as Brexit. Despite the uncertainties and developments surrounding Brexit, the merger will continue as usual.
After the merger, the companies will continue under the name 'Lakeland Dairies Co-Operative Society Limited' and the partnership will also make the company Ireland's second largest dairy processor after Glanbia. The dairy processor will process approximately 1,8 billion liters of milk annually, of which 1,2 billion liters of milk will come from Lakeland and 0,6 billion liters of milk from LacPatrick.
Uncertainty due to Brexit
Michael Henley, the CEO of Lakeland Dairies, does indicate that recent developments about brexit have created some doubt about the merger date. "On the other hand, there is also a high chance that Brexit will be postponed." So it remains to be seen what will ultimately be decided.
According to Henley, the collaboration also delivers several strategic benefits. "There are also opportunities in terms of economies of scale and we can gain benefits from combining the offer." Finally, the CEO announced that he wanted to offer a strong milk price to the dairy farmers.
Tim Roetman
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