NI’s largest dairy processor, Lakeland Dairies, had a solid year of trading in 2024, with turnover up 9% to £1.44bn* and operating profit before exceptional items, nearly trebling to hit £34.93m.That left the co-op with an operating profit margin of 2.4%, which is broadly in line with profits made within local agri-food processing. In 2023, profit margin dipped below 1%.
NI’s largest dairy processor, Lakeland Dairies, had a solid year of trading in 2024, with turnover up 9% to £1.44bn* and operating profit before exceptional items, nearly trebling to hit £34.93m.
That left the co-op with an operating profit margin of 2.4%, which is broadly in line with profits made within local agri-food processing. In 2023, profit margin dipped below 1%.
Once allowing for interest charges, other income and exceptional items, which are costs mainly related to restructuring within the Lakeland business, pre-tax profits finished 2024 at £17.6m, compared to a pre-tax loss of around £8m in 2023.
The decision to restructure the Lakeland business was announced in late 2023, with the co-op ceasing production in Monaghan town, as well as Banbridge and the milk drying plant at Lough Egish. The Monaghan site closed earlier this year and a sale process has begun. The Banbridge facility was sold in 2024, with a profit on disposal included in the accounts of €8.6m.
Speaking to the Irish Farmers Journal, Lakeland CEO Colin Kelly said that rationalisation is starting to have a positive impact on the business and the focus is firmly on products that deliver efficiency and profit.
“We are reducing the product range that we have. We are mainly a butter and powder business. We want to be as efficient as we can and build value through innovation. I want the business run stretched, not stressed,” he said.
Prices
On farmgate prices, he said that improved trading in 2024 allowed the co-op to pay a “much more competitive” milk price last year. Currently, he said the market looks “steady”, with supply partly constrained by the likes of Bluetongue and Foot and Mouth Disease in Europe.
However, the wider agri-food industry is waiting to see how the tariffs announced by US president, Donald Trump will impact global supply chains and ultimately the extent to which these tariff costs will be passed on to consumers.
“Consumer sentiment is the bigger thing. We need people to be eating out, travelling and socialising,” said Kelly.
In 2024, the Lakeland milk pool remained steady at around 2bn litres. Around 55% of the total is produced by farmers in NI.
*Note, the Lakeland accounts are reported in euros, with conversions done to sterling using the prevailing exchange rate at the end of 2024.
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