TWO of Ireland's oldest diaries have merged to form LacPatrick Co-operative, which will begin trading next month with a combined turnover of £260m and payroll of 300.
And the deal announced yesterday between Ballyrashane and Town of Monaghan Co-ops has been described as a "game changer" by the new management team.
With over 1,000 farmers delivering 560 million litres of milk annually, the newly merged business was launched as a "platform for growth" against a the backdrop of a challenging global market.
Gabriel D'Arcy, new chief executive and former chief executive of Town of Monaghan Co-op, said the amalgamation of the two enterprises heralded a "powerful new force" for the northern dairy sector.
"We now have the scale and ambition to win in what is currently a very challenging and competitive marketplace," he said.
"Given the volatility of global dairy markets, this merger further underlines the importance and significance of this ambitious move by our two companies."
Mr D'Arcy added that shared geography and production facilities, technologies and customer listings, "together with the combined balance sheet strength" offered a unique opportunity to create a "true leader" in the dairy food sector.
Deputy chief executive Mr Kemps said the move was "necessary" given the state of the market and the poor returns for producers.
"The size and scale that we now have as a merged entity will ensure we can be more competitive and achieve better returns," he said. "Our aim is to give dairy farmers in the north of the island confidence to grow their own businesses and herds.
"LacPatrick as a combined entity can achieve scale and volumes, delivering more than the two separate companies could have done on their own."
The name was chosen to reflect the size and scale of the new operation and its "global ambitions", he said, while the two-pronged approach ('Lac' which is Latin for milk and 'Patrick' which is synonymous with Ireland) underpinned its rich joint heritage.
Meanwhile, the new co-op's strapline, 'Dairy By Ireland Since 1896', reflected "the longevity in both markets and communities" in Monaghan and the north Antrim coast.
Ballyrashane and Town of Monaghan Co-ops each currently employ150 staff and boast a wide portfolio of dairy products, including branded butter, yoghurt, cream and milk.
