Lakeland Dairies reports profits of €7.9m

Cavan-based Lakeland Dairies has reported an increase in operating profit of 16 per cent to €7.9m on revenues of €473 million for 2012.

In particular, revenues in its foodservice and agri-trading divisions rose by 10 per cent and 28 per cent respectively, although there was a 9.5 per cent reduction in its food ingredients branch due to pricing pressures and volatility in international markets.

Group chief executive Michael Hanley welcomed the results of last year's performance and said it had been done while paying as high a price to milk producers as possible.

Lakeland Dairies is the country’s second largest dairy processing cooperative operating across 15 counties in the northern half of the island.

Annually, it processes about one billion litres of milk into a number of products and exports to countries across the world.

Mr Hanley said that while challenging, industry prospects for 2013 look promising.

“Overall prospects for the global economy remain uncertain and weak economic conditions are likely to persist in developed economies,” he said.

“Significantly stronger growth is expected in emerging economies. Global milk supplies have reduced and import demand remains solid in key importing regions. This will create an upside potential for Irish dairy exports and prices in 2013.”