Two NI dairy farmers have successfully taken a civil case against a NI dairy co-op for breach of contract.
The two producers, from Co Fermanagh and Co Down, were among a number of suppliers who have left Lakeland Dairies to supply other processors in recent years.
In response to farmers putting in their notice, Lakeland had effectively applied penalties by holding back payments that had been made to other suppliers to the co-op.
Similar penalties have existed in other NI dairy co-ops, and in the case of Lakeland it has previously notified suppliers that 13th payments will not be made to farmers with a notice in to leave.
The two legal cases were brought at the end of 2024 and a decree was issued by District Judge Claire Harmer in Lisburn civil court on Thursday 10 September in favour of both farmers.
One was awarded £4,355.16 and the other £3,380.15, with “full costs to follow” in both cases.
The money is understood to relate to the withholding of 13th payments. It is not yet known if Lakeland intends to appeal the decision.
“We will take time to review the judgement and have no further comment to make at this time,” said a co-op spokesperson.
Larger group
It is also understood that the two farmers were part of a group of over 10 former Lakeland suppliers who were penalised when they had put in a notice to leave, so it remains to be seen what action these other farmers now take. The judgement also potentially has implications for other co-ops who withhold any payments to farmers who want to switch processors.
During 2024, the UK-wide Fair Dealing Obligations (Milk) Regulations came into force, which requires written contracts to be in place and states that once a notice to terminate has been given, a processor cannot “alter the pricing method or price per unit of milk”.
While the legislation came into effect on 9 July 2024, there was a 12-month transition period for existing contracts, which meant all processors had to comply with this law from 9 July 2025.
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