Lakeland Dairies, the major cross-border dairy processing co-operative, has reported a 15% increase in revenues to £491 million for 2014, yielding an operating profit of £10 million, up by 10% on the previous year.

Group Chief Executive Michael Hanley said: “These are very robust results, set against difficult market conditions in 2014, where Lakeland Dairies also paid a competitive milk price. We experienced consistently strong demand across our portfolio of dairy ingredients and dairy foodservice products. This was achieved through growth and new business development activity in key markets.

“Consumer sentiment has improved gradually in key markets. There is a growing requirement for high quality milk powders and functional ingredients in nutritional, pharmaceutical and beverage markets.

“During the year, we completed a new £8m global logistics centre at our major foodservice processing centre in Newtownards, Co. Down. This is a highly automated facility with over 14,000 individual pallet spaces and robotic systems to manage, assemble and prepare consignments for export.” “In 2014 we announced a planned £28m investment in ‘Bailieboro Dryer Number 3’, construction of which has now started in the current year for completion in 2016.

“Lakeland Dairies currently produces 90,000 tonnes of milk powders a year and this will rise to 130,000 tonnes on completion of the new Bailieboro Dryer Number 3. The same site also produces 24,000 tonnes of butter and butter products.

Lakeland collects and processes over 800 million litres of milk annually across 15 counties. It offers 170 high quality dairy foodservice and food ingredient products in over 70 countries worldwide, exporting close to 100% of its entire production capacity to global markets.