The majority of dairy farmers who previously supplied liquid milk to Linwoods have switched to a new processor this week, despite LacPatrick agreeing a deal in April to purchase the entire milk pool and the retail milk business of the Armagh-based company.

As of 1 May, Dale Farm has taken on Linwoods’ suppliers from the Newtownards area with a combined milk pool of approximately 6m litres.

Aurivo has taken on four suppliers with a combined milk pool of 2.5m litres, while Strathroy has acquired one new supplier with just short of 2m litres annually.

Glanbia Cheese had agreed to take on one supplier, who is producing 3m litres annually, before LacPatrick announced it had agreed a deal with Linwoods last month.

It is understood that from an original pool of 13 farmers, just one dairy farmer who was previously supplying Linwoods, has moved to LacPatrick. With the current uncertainty surrounding the future of LacPatrick, as it seeks a possible merger or partnership with another co-op, it turned out to be fairly easy pickings for other processors.

Where that leaves the Linwoods and LacPatrick deal is unclear, as the milk pool was one of the major assets to be traded.

It is understood that negotiations are ongoing between both companies.

Dale Farm

In addition to gaining some Linwoods suppliers, Dale Farm is also understood to have taken on a small number of dairy farmers directly from LacPatrick this week.

The farmers in question were not under contract and had been in negotiations with Dale Farm for quite some time, and well before any news emerged that LacPatrick was seeking to join up with another co-op.

The decision was approved by the Dale Farm board last month.

Meanwhile, the co-op has now begun a new arrangement with Bibby Distribution to handle its milk collection. Up to now, milk collection was in-house.

It is hoped that outsourcing will help to drive efficiencies and cost savings in the business.