Fane Valley and Lakeland Dairies announce joint ventures
Fane Valley and Lakeland Dairies have today announced two joint ventures that they said will improve economies of scale and overall competitiveness for their farmer members, milk producers and customers.
The first involves a merger and pooling of both of the co-operatives’ feed manufacturing, sales and stores activities into an agribusiness company to be managed by Fane Valley. Lakeland Dairies will be a partner and shareholder in this and will also be represented on the board of the new company.
Fane Valley and Lakeland Dairies currently have an annual animal feed manufacturing capacity of 310,000 tonnes and 190,000 tonnes respectively.
The projected annual revenues of the joint venture will be around €175m
The second joint venture is involves merging the two societies’ dairy processing activities and operations, to be managed by Lakeland Dairies. Fane Valley will be a partner and shareholder in this.
In Northern Ireland, Fane Valley and Lakeland Dairies currently procure 250 million litres and 330 million litres of milk respectively each year for processing into a wide range of value added dairy products and food ingredients, all of which are exported worldwide.
Combined with the total existing Lakeland Dairies milk pool, the dairy joint venture will process over 1 billion litres of milk annually.
The projected annual revenues of the dairy joint venture will be around €670m.
The two co-operative societies will otherwise continue to operate on an independent basis and each will support the other in the operation of the joint ventures.
They said today that a full merger of the two societies will potentially be considered in the future. This would be subject to member approval in each co-operative.
For more please click: http://www.businessandleadership.com/business/item/51446-fane-valley-and-lakeland/