Lakeland Dairies posts operating profit increase of 15%

Lakeland Dairies, the largest cross-border dairy processor on the island of Ireland, has announced that its operating profit is up 15%.

The farmer-owned co-op said its operating profit was £28.7 million in 2022, a rise of £5.1 million (15%).

The processor's financial results for last year also show an increase in revenue of 45%, to £1.7 billion.

Lakeland Dairies collects over 2 billion litres of milk from 3,200 farm families across 16 counties in Northern Ireland and the Republic of Ireland.

The cooperative has a portfolio of 240 different dairy products, which it exports to over 100 countries worldwide.

During the year, Lakeland Dairies distributed £973 million in payments to milk supplying farms across 16 counties, spanning both the north and south of the island.

Lakeland Dairies Group chief executive, Colin Kelly said the results were based on "a strong, progressive and resilient performance".

However, he warned that market conditions for 2023 were "proving much tougher for our suppliers".

"It will remain contingent on global factors including the overall balance of supply and demand, across our extensive product portfolio, while economic uncertainty remains a serious concern, with the potential for continued market volatility."

He added: “In the years ahead, we will seek to optimise the strengths that Lakeland Dairies has established to date while also continuing developments on an ever more sustainable platform.

"Global demand for dairy will remain strong in the years ahead," Mr Kelly said.