The country's third largest dairy processor has confirmed that the facility it aquired as part of a deal with Fane Valley will close for the season from September. Rumours had been circulating for months that Lakeland would cease all production at the Banbridge site in favour of bringing all milk to its facilities in counties Monaghan and Cavan.

In a statement on Tuesday, Lakeland said the "move to seasonal processing is a common feature of the dairy industry and is already practised in Lakeland Dairies with the seasonal operation of a milk powder plant in Lough Egish and a casein plant in Killeshandra".

Lakeland acquired the dairy division of Fane Valley in May this year. The two sides had initially planned a joint venture but these plans were scrapped and replaced with Lakeland taking over Fane Valley's dairy business. As part of the deal, Lakeland will process the milk of former Fane Valley suppliers in Northern Ireland.

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"Lakeland processes over 1bn litres of milk annually and allocates this milk as flexibly and profitably as possible to different sites and into different product areas which are in the highest market demand, yielding the highest milk price, at different times throughout the year," a spokesman for the co-op said.

Staff

The co-op confirmed that it is in dialogue with staff at the Co Down site

"Lakeland Dairies is consulting with staff at Banbridge on the implementation of these changes."

For more on this story, see this week's Irish Farmers Journal

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