Analysis Companies

Irish Lakeland Dairies aims for more acquisitions like De Brandt

April 19, 2024 - Wouter Baan

Irish dairy cooperative Lakeland Dairies is quite outspoken about its acquisition strategy. Over a month ago, Belgian butter trader De Brandt was already acquired, and the cooperative aims for more deals like this.

During the presentation of the annual figures this week, Lakeland Dairies' management extensively discussed the acquisition strategy. CEO Colin Kelly mentioned that they are looking forward to new acquisitions in the United Kingdom, the European Union, and the United States. In total, the management has €100 million ready for acquisitions.

They are particularly interested in dairy companies that add significant value, as this would align perfectly with the high-quality milk produced by the cooperative's 3,200 member dairy farmers. With this, Lakeland Dairies, after Tirlan, becomes the largest milk processor in the country. The recent acquisition of butter trader De Brandt from Belgium is seen as a good example of the type of companies they are interested in. By acquiring such companies, Lakeland Dairies believes it can add more value that ultimately benefits the milk price.

Significant profit drop
Currently, milk prices are under considerable pressure. In February, €1 was already taken off the milk price, and in March, another €2.50 per 100 kilograms. This brings the milk price down to just over €40 per 100 kilograms. The annual figures for 2023 also faced significant pressure. While revenue dropped by about 20% to €1.6 billion, profits plummeted by 54% to €14.8 million. Management described it as a challenging year.

Wouter Baan

Wouter Baan is the editor-in-chief of Farmerbusiness and a market specialist in dairy, pork, and meat at DCA Market Intelligence. He also tracks developments within the agribusiness sector and conducts interviews with CEOs and policymakers.

Analysis Cattle & Beef

Irish slaughter dip likely temporary

melkveebedrijf koeien weidegang ierland

News Dairy

Irish milk supply lower, but hope glimmers on the horizon

David Kennedy

News David Kennedy

Bord Bia: 'Recovery of Irish milk production on the horizon'