Northern Irish dairy in cross-border merger

Ballyrashane Creamery, Northern Ireland's oldest dairy co-operative, has merged with Town of Monaghan Co-op in the Republic of Ireland to form LacPatrick.

Based at Coleraine in county Derry, Ballyrashane was formed in 1896, while the Monaghan business, which also has operations in County Tyrone and Dublin, was founded in 1901. Ballyrashane is a major supplier of milk and butter to leading retailers such as Marks and Spencer and also exports Regato cheese to European markets.

The newly merged company has confirmed plans for "significant new investment" as part of its growth strategy.

LacPatrick will be led by a new board of directors and a new management team headed up by Gabriel D'Arcy and Nigel Kemps - the former chief executives of Town of Monaghan and Ballyrashane respectively. D'Arcy will be chief executive, with Kemps appointed as deputy chief executive.

The dairy giant will be a "powerful new force in the Ulster dairy sector", according to D'Arcy.

"We now have the scale and ambition to win in what is currently a very challenging and competitive marketplace.

"Given the volatility of global dairy markets, this merger further underlines the importance and significance of this ambitious move by our two companies."

"This merger is a platform for future growth for all associated with LacPatrick and we look forward to making further announcements in the weeks and months ahead regarding future investment."

Kemps added that the merger is "particularly necessary when we look at the state of the market and especially the poor returns paid to producers".

"Our aim is to give dairy farmers in the north of the island confidence to grow their own businesses and herds," he added.

The newly merged company will have a combined turnover of £260 million and employs a workforce of 300. It will officially commence trading on 1 September 2015.