Irish mega dairies Ballyrashane, Norther Ireland’s oldest dairy, and Town of Monaghan Co-op, which was founded in 1901, have combined to create LacPatrick Co-operative, the dairies have announced. The management teams, who are calling the combination “game changing,” are looking to gain scale and volume in the region amid an increasingly competitive field and a volatile global market.

 

Both dairies have similar product lines, including butter, yogurt, cream and milk. The boards of directors at the merging entities will be combined to form one board. Gabriel D’Arcy, the former CEO at Town of Monaghan Co-Op, will serve as chief executive while Nigel Kemps, the former CEO of Ballyrashane Co-op, was named deputy chief executive.

 

“This merger is particularly necessary when we look at the state of the market and especially the poor returns paid to producers,” noted Kemps in a press release. “The size and scale that we now have as a merged entity will ensure we can be more competitive and achieve better returns. Our aim is to give dairy farmers in the north of the island confidence to grow their own businesses and herds.”

 

The Irish News pointed to more than 1,000 dairy farmers producing 560 million liters of milk each year.

 

LacPatrick’s growth strategy involves “further significant new investment,” the details of which are expected to unfold in the coming weeks and months, the press release indicates.

 

The new coop will commence trading as one entity on Sept. 1.