Sales boost for Northern Irish Pritchitt Foods
Lakeland Dairies, which owns Pritchitt Foods and has a joint venture
with Fane Valley Co-Operative, both in Northern Ireland,
anticipates a gradual improvement in dairy market conditions in 2016once global stocks begin to clear, according to chief executive
Michael Hanley.
"Lakeland Dairies has continued to put in the groundwork required toensure long term sustainability and continuing growth and
development in an increasingly globalised and often volatile dairy
marketplace. This includes investments in new milk processing
capacity, larger scale and an efficiency and cost reduction
programme across all operations."
"Dairy markets have been challenging due to several factors coming
into play at the same time. This has included the abolition of the
EU quota system and increased production by European farmers, the
Russian ban on EU dairy products and a global oversupply from dairy producing countries.
"The major dairy importers and traders across every continent have
taken advantage of lower prices to increase their stock of dairy
products over the past year and this will take some time to wash
through the system. Overall we anticipate that there will be a
gradual improvement in market conditions once global stocks begin
to clear.
"During the year we acquired Taste Trends in the UK, started our
investment in Bailieboro Dryer Number Three and opened our new
Global Logistics Centre in Newtownards. We were very happy to
welcome hundreds of our milk producers and their families to the
open days held in Newtownards which is a technologically advanced
facility.
"In spite of the current market volatility, we are making strong
progress overall.
"We have 170 different products and these go to 77 countries
worldwide. Our foodservice division makes over 100,000 tonnes of
dairy products and 700 million individual product units each year.
In the Food Ingredients sector, we supply hundreds of major food
industry customers with ingredients and the world's top infant
nutrition companies with the highest quality milk powders.
"Recently, we also announced 2 strategic joint ventures with Fane
Valley Co-operative across our respective dairy processing and
agribusiness operations. This is an excellent development between
two friendly and neighbouring co-operative societies.
"Lakeland Dairies will be the second largest dairy processing
co-operative on the island of Ireland in 2016, with a milk pool of
over 1.1 billion litres. That will further enhance efficiencies
across our entire processing footprint. Indicatively, that level
of milk throughput will yield 160,000 tonnes of powders a year and
over 30,000 tonnes of butter, in addition to our dairy foodservice
output.
"All of these developments have been achieved from existing
resources off the back of a strongly performing and well managed
business. There have been no share-ups, levies or funding demands
placed on our milk producers. As a farmer owned co-operative, we
are intent on delivering value to our milk producers with as high a milk price that we can possibly pay, in line with market conditions.That will always continue to be our commitment.
"Notwithstanding the challenges of the past year, Lakeland Dairies
is strategically and positively positioned to support our milk
producers on a long term and sustainable basis into the future,"
Hanley added.
with Fane Valley Co-Operative, both in Northern Ireland,
anticipates a gradual improvement in dairy market conditions in 2016once global stocks begin to clear, according to chief executive
Michael Hanley.
"Lakeland Dairies has continued to put in the groundwork required toensure long term sustainability and continuing growth and
development in an increasingly globalised and often volatile dairy
marketplace. This includes investments in new milk processing
capacity, larger scale and an efficiency and cost reduction
programme across all operations."
"Dairy markets have been challenging due to several factors coming
into play at the same time. This has included the abolition of the
EU quota system and increased production by European farmers, the
Russian ban on EU dairy products and a global oversupply from dairy producing countries.
"The major dairy importers and traders across every continent have
taken advantage of lower prices to increase their stock of dairy
products over the past year and this will take some time to wash
through the system. Overall we anticipate that there will be a
gradual improvement in market conditions once global stocks begin
to clear.
"During the year we acquired Taste Trends in the UK, started our
investment in Bailieboro Dryer Number Three and opened our new
Global Logistics Centre in Newtownards. We were very happy to
welcome hundreds of our milk producers and their families to the
open days held in Newtownards which is a technologically advanced
facility.
"In spite of the current market volatility, we are making strong
progress overall.
"We have 170 different products and these go to 77 countries
worldwide. Our foodservice division makes over 100,000 tonnes of
dairy products and 700 million individual product units each year.
In the Food Ingredients sector, we supply hundreds of major food
industry customers with ingredients and the world's top infant
nutrition companies with the highest quality milk powders.
"Recently, we also announced 2 strategic joint ventures with Fane
Valley Co-operative across our respective dairy processing and
agribusiness operations. This is an excellent development between
two friendly and neighbouring co-operative societies.
"Lakeland Dairies will be the second largest dairy processing
co-operative on the island of Ireland in 2016, with a milk pool of
over 1.1 billion litres. That will further enhance efficiencies
across our entire processing footprint. Indicatively, that level
of milk throughput will yield 160,000 tonnes of powders a year and
over 30,000 tonnes of butter, in addition to our dairy foodservice
output.
"All of these developments have been achieved from existing
resources off the back of a strongly performing and well managed
business. There have been no share-ups, levies or funding demands
placed on our milk producers. As a farmer owned co-operative, we
are intent on delivering value to our milk producers with as high a milk price that we can possibly pay, in line with market conditions.That will always continue to be our commitment.
"Notwithstanding the challenges of the past year, Lakeland Dairies
is strategically and positively positioned to support our milk
producers on a long term and sustainable basis into the future,"
Hanley added.