Lakeland prospers in changing dairy environment

Lakeland Dairies has reported operating profits of €5.2m on turnover which increased by 22% to €411m, for the financial year to December 31, 2003.

Organic business growth plus a five-month contribution from recently acquired dairy foodservice firm L.E. Pritchitt & Co. Ltd., helped power the results.

The increased turnover also reflected a full year’s operation by the Bailieboro Foods and Nestlé Omagh businesses, bought by Lakeland in 2002.

Turnover in the Dairy division increased by €75m to €354m on the previous year bolstered by new contract wins and revenues from acquired operations.

The co-op’s Agri Trading division performed strongly throughout the year with turnover of €57m.

The Lakeland Chief Executive also signaled the establishment of a new Foodservice operating division within the Group, marking the co-op’s expanding position at the forefront of the dairy foodservice industry.

Lakeland has also begun the manufacture and supply of the HB Ice Cream range of products on behalf of Unilever Ireland, from its processing facility at Killeshandra, Co Cavan.

Its food ingredients division entered into a supply contract with Diageo Group to provide fresh cream for the Baileys brand, from the Lakeland processing facility at Bailieboro, Co Cavan.

During the year, two new Board members were appointed representing Northern Ireland producer interests.

Commenting on the figures, Ed Prendergast, Chief Executive said: "The results for the year are very satisfactory bearing in mind the variable levels of demand which existed for dairy stocks in volatile international markets.

"In the past year, Lakeland Dairies has taken further significant strides forward and will continue to pursue ongoing growth and development with renewed energy and enthusiasm in the coming years," he added.

However, Prendergast warned that the Irish dairy industry must refocus and learn to live without intervention support in an effort to grow its share of European Union dairy markets.

He cited the example of the butter intervention price that will fall by 25% and SMP support by 15% over the next four years.

Lakeland Dairies operates across fifteen counties on a cross border basis, processing over 700 million litres of milk annually at several major facilities.

Approximately 450 million litres are sourced from the Republic of Ireland and 250 million litres from Northern Ireland.