Contemporary Scholars Conference Cavan, Ireland 2016 Lakel La - PowerPoint PPT Presentation

Michael Hanley, CEO, Lakeland Dairies Contemporary Scholars Conference Cavan, Ireland 2016

Lakel La eland and - The e Dai airy ry Ex Expe perts ts Lakeland Dairies is a farmer owned co-operative with a heritage of excellence in dairying spanning over 100 years. It is an internationally recognised supplier of superb dairy ingredients and foodservice products with an outstanding mix of high quality raw materials, modern processing facilities and a highly skilled workforce.

Heritage Killeshandra Co-operative (estd. 1898) Lough Egish Co-operative (estd. 1902) MERGED 1990 Acquired Bailieboro (Golden Vale) and Nestle (Omagh) 2002 Acquired Pritchitts (Newtownards) 2003 Opened R&D Knowledge Centre (Newtownards) 2003 Closed Omagh and rationalised production to Lough Egish and Bailieboro 2006 Commissioned new 7M Tonne/Hour Niro Dryer at Bailieboro 2010 Closed Lough Egish Drying Facility / Rationalised all drying to Bailieboro 2010 Quota Abolition 2015…..

Lakeland Dairies is creating a Sustainable Future for our Milk Producers

Some Key facts & figures Our Revenues: € 625 million 2014 Our Employees: 670 Milk Processing Volumes: 850 million litres Our Milk Suppliers: 2,100 Milk Processing Locations: 4 Corporate structure: 100% Co-operative

1898 – 1995 – 2015

Irish milk processor catchment areas Dark Green = Lakeland Shaded Green = Shared

Organisational Structure Lakeland Dairies Board 14 elected directors 1 non exec Chief Exec Mr Michael Hanley Group Services Foodservice Food Ingredients Agribusiness Financial Socious Ingredients Business Unit Milk Assembly NI Business Unit Unit Purchasing USA T/O € 100m Personnel

Scale, Efficiency, Market Access, Competitiveness

Processing 1.1 Billion Litres of Milk 160,000 Tonnes Milk Powder 30,000 Tonnes Butter 170 Branded Products 77 Countries 500,000 Tonnes of Feed

€ 10.9 m

Operating Profit – 2011 .

2050: 9.7 Bn

Africa Asia More than 3 out of every 4 people on the planet live in either Africa or Asia (UN 2012)

Ireland dairy exports to China growing rapidly 百万 500 450 400 350 300 250 200 150 100 50 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Trends driving dairy food production

World Milk Supply Jan-Dec 2015 (Key Exporters) +1.4% Net Position -1.3% Argentina Australia +2.2% NZ -1.4% +2.1% EU28 +1.2% USA -1,000 -500 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 000’s Tonnes

World Milk Supply Jan-Dec 2014 (Key Exporters) Net Position +3.7% -3.9% Argentina +3.7% Australia NZ +8.4% EU28 +4.5% +2.4% USA -2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 000’s Tonnes

EU Milk Production Jan-Dec 2014 Germany +3.6% est. France +5.7% Netherlands +2.1% UK +8.3% Ireland +4.2% Poland +7.1% Other EU +3.9% 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 000’s Tonnes

Global Dairy Trade Price Index 2000 - 2015

1,000 2,000 3,000 4,000 5,000 6,000 GDT Auction Results 3 rd Jan 2012 to 2 nd Feb 2016 0 3 Jan 2012 (US$/MT) 1 Feb 2012 6 Mar 2012 3 Apr 2012 1 May 2012 5 Jun 2012 3 Jul 2012 1 Aug 2012 4 Sep 2012 2 Oct 2012 6 Nov 2012 4 Dec 2012 2 Jan 2013 5 Feb 2013 5 Mar 2013 2 Apr 2013 1 May 2013 4 Jun 2013 2 Jul 2013 6 Aug 2013 3 Sep 2013 1 Oct 2013 5 Nov 2013 3 Dec 2013 7 Jan 2014 4 Feb 2014 4 Mar 2014 1 Apr 2014 6 May 2014 3 Jun 2014 1 Jul 2014 5 Aug 2014 2 Sep 2014 1 Oct 2014 4 Nov 2014 2 Dec 2014 6 Jan 2015 3 Feb 2015 3 Mar 2015 1 Apr 2015 5 May 2015 2 Jun 2015 1 Jul 2015 4 Aug 2015 1 Sep 2015 6 Oct 2015 3 Nov 2015 1 Dec 2015 5 Jan 2016 2 Feb 2016

Addressing the need…

Lakeland FutureMilk Initiative… Joint Lakeland & Teagasc Programme Targeting… Milk protein content Grass utilisation Herd fertility - Business management awareness meetings - Producers are focussed on growth, new investment and sustainability - Strong potential for new milk from start-ups and converters … (A) Make current production more efficient … (B) Facilitate profitable expansion

Lakeland Dairies - Foodservice Division (trading as Pritchitts) Turnover : over € 170m Processing over 140m litres of dairy and non dairy liquid ingredient Production sites Newtownards, Northern Ireland Killashandra, Southern Ireland Sales and Marketing Bromley, United Kingdom

Minipots Minibutter & Powders

Innovation

Markets - Food Ingredients & Foodservice

Now Fully Operational New Global Logistics Centre ‘ Just in Time’ Global Distribution 14,000 Pallet Spaces Robotic Order Assembly

Adding value today Coolicious Acquisition

Global partnerships…

Adding further value for tomorrow € 40m Bailieboro Dryer No. 3 (on target for Spring 2016)

Planning for The Future Graduate Development Programme

Priority… The main pillars for the Dairy Industry must be… • Sustainability in Production and Processing • Economies of Scale and Total Efficiency • Technology and Value Added Products Lakeland is delivering on all these fronts

National Branding for Sustainability • 85% of all agrifood manufacturers are members • Certification for sourcing, manufacturing, social responsibility • 43,500 beef farms. 90% of all beef production • 18,000 dairy farms starting into new quality assurance scheme • Goal: Every farm, every business to be certified by 2016

Lakeland Dairies is creating a Sustainable Future for our Milk Producers