Lakeland Dairies has announced the closure of three of its processing sites, with the loss of 78 jobs.
The farmer-owned milk processor said that between now and the first quarter of 2025, it will implement “significant change” across the business, including the realignment of its milk processing footprint, “to meet future market requirements”.
The board of Lakeland Dairies has approved a plan to cease operations at three sites, two in Monaghan and one in Down, as part of a strategy to make its processing activities more efficient.
The co-operative said that “regrettably, redundancies will be necessary” to realise its new strategy, as it is anticipated that 78 jobs will go as a result.
Lakeland Dairies Monaghan is set to close in the first quarter of 2025, as a “major development project” will now commence to enable the transfer of liquid milk production Lakeland Dairies Killeshandra, with all other bulk milk handling activities transferred to other Lakeland Dairies sites.
Milk drying facilities at Lough Egish, in Monaghan will close in June 2024, as milk will continue to be processed at other sites. This will not impact the Lakeland Agri feed and inputs operations at the neighbouring Lough Egish feed mill.
The Lakeland Dairies site in Banbridge in Down will also close in June 2024. No milk has been directly processed at the site for many years, as it has more recently been used for butter churning and packaging and powder storage.
Lakeland Dairies has indicated its intention to sell the Lakeland Daries Monaghan and Lakeland Dairies Banbridge sites after their closure.
Lakeland Dairies group chief executive Colin Kelly said that the co-operative has a “strong balance sheet”, with a milk pool of 2 billion litres produced by 3,200 farm families, but that the next decade will see a shift in the milk industry from large volume growth to “value-added growth and adding capability throughout the business”.
“We do appreciate that this announcement creates uncertainty for our colleagues and their families. We will work closely with them and support them throughout this process in which they will continue to be treated fairly and with respect,” he said.
The co-operative has said that there will be redeployment opportunities for some staff into vacant positions in the business, and that it has commenced an engagement and consultation process with staff and their unions directly.
The remaining 1,300 Lakeland Dairies staff will not be directly impacted by the announcement.
Minister for Social Protection Heather Humphreys said the redundancy announcement was “deeply disappointing”, and that supports will be put in place to assist impacted workers.
“Lakeland Dairies is a very important employer in my own home County of Monaghan and throughout the border region. Any decision by such a company to make staff redundant is deeply disappointing,” she said.
“Social protection officials will engage directly with the company and ensure all available supports are put in place, including opportunities to retrain and reskill,” she added.
