Lakeland Dairies has expanded into the US food ingredients market after setting up a joint venture with Chicago-based group BL Ingredients. Confirmation of the US expansion came with Lakeland's 2000 results, which showed pre-tax profits up 28 per cent to €5.2 million (£4.1 million). Turnover was up 6 per cent at €218 million.

Chief executive Mr Dan Buckley, who retires at the end of the month after 10 years in the job, said that, under the terms of the 50-50 joint venture, Lakeland would provide its casein for processing into food ingredients.

He declined to give financial details but said the venture hoped for turnover of around $40 million (€44.4 million) and to be profitable in year one.

Lakeland benefited last year from strong prices for casein and skim milk powder on world markets. In the group's food service business, there were strong sales of UHT products and ice cream mixes during the year. But Mr Buckley warned that the foot-and-mouth outbreak would affect the group's performance in the current year.

Lakeland has been given a boost by the decision to allow 50,000 gallons of milk a day collected in Northern Ireland to be brought to Lakeland's facilities in the Republic without undergoing heat treatment.