Lakeland Dairies has announced dairy and agribusiness mergers with Fane Valley.
The merger will involve Fane Valley Dairies, Fane Valley Stores and Fane Valley feeds. The company's meat and food processing divisions are not included.
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Lakeland said the merger will "enhance economies of scale and overall competitiveness for their farmer members, milk producers and customers at home and abroad."
The dairy joint venture is being established by a merger and pooling of both of the societies’ dairy processing activities and operations, to be managed by Lakeland Dairies. Fane Valley will be a partner and shareholder in the dairy joint venture.
Combined with the total existing Lakeland Dairies milk pool, the Dairy Joint Venture will process over 1bn litres of milk annually for processing into ingredients and value-added products.
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The agribusiness joint venture is being established by a merger and pooling of both of the societies’ feed manufacturing, sales and stores activities into a major agribusiness company to be managed by Fane Valley.
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By GlobalData"The establishment of these strategic joint ventures will create further value and benefits for the producers and customers of both co-operatives. This development underpins our mutually shared ambition to provide the highest possible milk prices to producers. Through this combination, we are adopting an innovative and strategic approach to maximising our efficiencies and overall strength in addressing the growing worldwide market demand for dairy products and food ingredients," said Michael Hanley, CEO, Lakeland Dairies.
William McConnell, chairman of Fane Valley Co-Operative, added: "This partnership will strengthen our position as a co-operative society while providing farmers with a firm platform for future sustainable growth and development. We look forward to working with Lakeland Dairies as we work together to exploit the future benefits of this development for our producers."
