Dairy plant closes with 53 jobs lost
The €411 million co-op expects to achieve €3 million savings in 2005 as a result. It will increase processing at other facilities with the diversion of up to 20,000 tonnes of powder requirement into alternative sites.
Lakeland Diaries employs 600 people and operates across thirteen counties, on a cross-border basis, processing over 700 million litres of milk annually into a range of value added dairy products and food ingredients.
Ed Prendergast, chief executive, said that recent CAP reforms and intensifying global competition required a strategic response from all dairy industry participants.
He said cutting costs across the group was vital to maintain current and future competitiveness.
"It is also vital given the rapid move by the EU towards world market prices with resulting pressures on the milk price being paid to Irish producers" he said.
Mr Prendergast said while redundancies at any time were regrettable, Lakeland had taken this decision for sound business reasons to reduce costs, increase commercial competitiveness and to underpin milk prices in line with future market conditions. “The benefits of this cost reduction programme will be seen in the years ahead through improved processing efficiency and the various operating economies to be achieved,” he said.
Lakeland said there would be no impact on the co-op's milk intake requirements from suppliers throughout Northern Ireland.
