Economy Minister Dr Caoimhe Archibald has announced a major £24.5 million investment by Lakeland Dairies at its Ballyrashane site near Coleraine to expand production capacity and boost exports. The investment includes £2.5 million from Invest Northern Ireland through the Agri-Food Investment Initiative, and comes as the creamery celebrates its 130th anniversary.
The funding will focus on upgrading liquid milk packing and butter production facilities at the County Londonderry site, alongside sustainability improvements designed to enhance energy performance. The Ballyrashane facility, which produces butter for supermarket brands and specialist bakery products supplied across Europe, serves as a key manufacturing hub for the cross-border co-operative.
Minister Backs “Regional Balance”
During a visit to the premises, Dr Archibald emphasised the strategic importance of the agri-food sector to rural economies. She said:
“Lakeland Dairies has been an important part of our food and drink industry in the north for many years. This significant investment demonstrates the company’s ongoing commitment to its business in the Causeway Coast and Glens area.
“It supports the continued development of the agri-food sector, strengthens export capability and includes important investment in sustainability. It will also help improve productivity within the business and contribute to better regional balance by supporting growth and opportunity in this area, all of which align strongly with my economic priorities.”
Company Pledges Export Growth
Colin Kelly, Chief Executive of Lakeland Dairies, framed the expansion as part of wider ambitions to capture international markets. He said:
“This significant investment in our Ballyrashane site reflects our commitment to the future and our ambition to grow in both domestic and international markets. The programme will expand capacity in liquid milk packing and butter production, and will support new product development, allowing us to meet growing demand in export markets. The project will also deliver wider environmental benefits, further enhancing the site’s energy sustainability performance.”
The Ballyrashane site operates as part of LacPatrick Dairies, which merged with Lakeland Dairies in 2019 to create the island of Ireland’s largest dairy processing co-operative. The group processes over 2 billion litres of milk annually from 3,200 suppliers across 17 counties.
Invest NI Contribution
The £2.5 million contribution comes from the Agri-Food Investment Initiative (AFII), a £46 million scheme launched in 2024 to help processors improve efficiency and productivity. Kieran Donoghue, Chief Executive of Invest NI, said:
“We’ve been working with the company for over a decade, and we are very pleased to support the company to undertake this investment. The AFII scheme has enabled several businesses like this to deliver major efficiency projects, boosting output and driving cutting-edge innovation across the region. This project stands out for its innovation and productivity, opening up global growth opportunities for the company by developing new high-value products.”
The AFII offers funding of up to 35 per cent for small businesses, 25 per cent for medium enterprises, and 20 per cent for large agri-food processors undertaking capital investments in machinery, software, and intellectual property. The scheme runs until December 2025.
Unanswered Questions
While the announcement highlights significant capital expenditure and sustainability improvements, several details remain unclear. The Department for the Economy’s press release does not specify how many jobs will be created or safeguarded by the expansion, nor does it quantify the expected increase in daily processing capacity.
The investment also sits against a backdrop of recent consolidation within Lakeland Dairies. In late 2023, the co-operative announced plans to close three production sites elsewhere as part of a “new strategic direction,” raising questions about the net impact on overall employment within the group.
Furthermore, while the Minister emphasised benefits for the “agri-food supply chain across rural areas,” the announcement offers no specific commitments regarding milk prices or procurement guarantees for the 3,200 farmer-suppliers who provide the raw material processed at Ballyrashane.
Points to Consider
- How many direct and indirect jobs will this £24.5 million investment create or protect at the Ballyrashane site?
- How does this expansion align with Lakeland Dairies’ broader restructuring strategy, which has involved closing other facilities?
- What specific environmental targets will the “sustainability-focused improvements” achieve, and how will progress be measured?
- Will the increased processing capacity result in improved milk prices or longer-term supply contracts for local dairy farmers in the Causeway Coast and Glens area?
- Given the cross-border nature of Lakeland Dairies, how will the investment be affected by ongoing post-Brexit regulatory alignment discussions?
Businesses seeking information about the Agri-Food Investment Initiative can check eligibility and apply through Invest Northern Ireland’s dedicated portal.