As pressure within the dairy sector has come to prominence in recent days, the farmers’ co-operatives, Fane Valley and Lakeland Dairies, have announced that they will create two joint ventures.

One of these will see the business of Fane Valley Dairies come under the management of Lakeland, with the assets and staff of Armaghdown Creameries transferring into the joint venture. The combined operation will be the second largest dairy processing business in Ireland. Fane Valley will have a shareholding in Lakeland Dairies and representation on the board of the enlarged business. It will process over one billion litres of milk per year.

The decision, agreed unanimously by the boards of the two co-operatives on Wednesday, follows closely on the vote by shareholders of Town of Monaghan and Ballyrashane co-ops last month to merge and form the new LacPatrick Co-op. The boards of all four co-ops involved have taken the view that they must grow to survive in business.

James Campbell's analysis: Pressure concentrates minds

Lakeland and Fane Valley join forces

James Campbell reports on two new joint ventures between Lakeland and Fane Valley Co-ops.