To keep up to pace with global demand, Lakeland Dairies plans to build a new €36m dryer facility at its plant in Baileborough, Cavan, the Irish Farmers Journal can exclusively reveal.

Lakeland chief executive Michael Hanley said the move is to ensure the co-op can meet demand for its products worldwide.

“There is demand on the global stage for added value products and we are moving to respond to those demands,” Hanley said.

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The 7t/hour dryer will be the third dryer to be based at the Cavan facility. The other two dryers in Baileborough have 7t/hour and 5t/hour, respectively.

The move to build a third dryer in Baileborough comes shortly after the decision to restart two dryers at the Lough Egish plant in Monaghan.

Hanley confirmed that both dryers are now operational in Lough Egish.

“We recommenced the smaller of the dryers in Lough Egish last year and we are in the process of getting the larger one working – there are some solids going through it now. When the new dryer is up and running, the larger one in Egish will be used for spillover,” Hanley confirmed.

The Irish Farmers Journal understands that the decision to develop the new facility was only signed off at board level recently.

It was not part of the group’s annual report two weeks ago and only became known outside board level following supplier meetings for Longford, Leitrim, Cavan, Monaghan and Offaly in the past week.

Hanley said growth from within their existing supplier base will form the majority of the anticipated expansion.

“We’ve surveyed our farmers and we’re looking at a 30% to 45% increase in output from them. The desire is there from within our own suppliers to grow and to expand,” Hanley admitted.

“We have also looked at the ICBF figures which show increases in dairy inseminations. There are more heifers on the ground too,” he added.

“[The] growth will be coming from our own suppliers mainly, but there will be growth too from new entrants in our catchment areas. We’re helping those who are planning on investing. We’re offering advice through a Teagasc adviser. We want growth, but only in a sustainable way,” Hanley concluded.

The sod is expected to be turned on the site in the coming weeks, with the dryer expected to be running in time for the 2016 milk season.