The sod has been turned on Lakeland Dairies’ new €36m 7t/hour drier in Cavan.

In May 2014, the Irish Farmers Journal exclusively reported that Lakeland had confirmed plans to build the second 7t/h drier at the Bailieborough site.

Once work is finished and the drier is operational, by January 2016, Lakeland will be able to process 130,000t of powders. Eighty-one jobs across a range of sectors in the co-op were unveiled at an official ceremony on Monday. There will also be a further 180 jobs created during the construction phase.

ADVERTISEMENT

Lakeland group CEO Michael Hanley was adamant that the new drier is not being funded at the expense of farmers’ milk cheque.

“There are no deductions, no revolving fund, no loyalty bonuses, no compulsory share ups in Lakeland.

“Using extra milk and adding added value to the milk, that’s how we’re going to make the repayments on the drier,” he said.

This drier is the second 7t/hour drier to be built at the Baileborough plant since 2010 and Hanley rejected the motion that the co-op had not anticipated growth that required a second drier to be built so soon.

“Quotas are being done away with and there has been good growth, but it’s really about the value added pieces. We recommissioned [the driers] in Lough Egish to handle peak production, but the new drier is all about adding value,” Hanley explained.

Milk prices

Michael Hanley said he is more positive now about milk prices than he was a month ago. However, he still remains cautious to the pace of recovery.

“You have to say that it’s positive to see the last three New Zealand auctions [global dairy trade – GDT],” Hanley said.

“There’s been drought in New Zealand and that’s going to affect production. That has helped sentiment … New Zealand prices are still low. Prices in the [GDT] auction were up 10%, 10% of 22c/litre is 2c, which makes 24c/litre. That’s still 6c south of where southern Ireland prices are though,” Hanley added.