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1.1 for Inspection Purposes Only. Consent of Copyright Owner Required for Any Other Use 1.0 INTRODUCTION 1.2 Overview Of Lakeland Dairies Co-operative Society Ltd 1.1 General Lakeland Dairies Co-operative Society Limited, Ireland's third largest dairy processing cc-operative, was formed as a result of the merger of Killeshandra and Lough Egish Co-operatlves in 1990. The Killeshandra Co-operative was founded in 1896 with the Lough Egish co-operative founded in 1901.The Co-operative acquired the Bailieborough Milk Drying Facility from the Thts Environmental Impact Statement (EIS) was prepared to address the potential environmental impacts of the construction Kerry Group fn 2001 and a Milk Drying Facility at Omagh from Nestle in 2003. The Pritchitts Foodservice Business at and operation of a proposed extension to the dryer facility at Lakeland Dairies Bailieboro. The proposed works will include an Newtownards was acquired in 2004. The facility at Omagh was closed as part of a rationalisation programme In 2008. extension to the existing dryer facllity to contain a new dryer plant with a total floor area of 3,546m2. The dryer bullding will incorporate 2 new evaporators, an extension to the milk storage area, a new bagging area, new car parking spaces, revised The business is owned by approximately 2000 farmers /shareholders, who supply milk to the Co-operative. It operates in the traffic arrangements, new security hut and all associated local underground drainage and miscellaneous site works. The northern half of the lslandaf Ireland and processes approximately 750 million litres of mi[k annually taken from the company's proposed extension to the existing site at the rear of the existing Facility which is located approximately Ikm Northeast of shareholders and third party sources. It is expected that milk processed wilt Increase to over 1 billlon litres annually by 2020, Bailieborough town on the R178 Shercock Road. The plant operates year round, processing approximately 500 milllon litres The shareholders elect a group of fourteen farmers to sit on the Board of Directors. There is one 'non-farmer' director on the per year in the production of butter and milk powder. Board. These dlrectors appoint a Chief Executive Officer to manage the business. There are three Business Units or Divtsions within Lakeland Dairtes, all managed by General Managers, who are members of Figure 1.1 Site Location Map the Executive Team. The other members of the Exefutlve Team are the Group Financial Controller and the Group Head of Human Resources. The Food-Service Division manufactures food-service products, such as Ultra High Temperature (UHT) or long-12fe milks, ice- cream and butter portions which are supplied into foodservice businesses and trades these globally. The Food-Ingcedients Division manufactures a range of milk powders, including skim milk powder, whole milk powder and 'fat-filled' powders which are traded globally and the 'Agri-Trading' Dlvislon supplies feed and other provisions to suppliers and other famers, while also looking after the interests of the suppliers/shareholders. Sates and marketing personnel are predominantly based at Killeshandra, Bailieborough, and Bromley in the UK. For inspection purposes only. Consent of copyright owner required for any other use. With the removal of milk quotas in the European Union from 2015 onwards, Lakeland Dairies expects to receive up to 40% more milk from Its suppliers by 2020. Lakeland Dairies currently has manufacturing sites at Killeshandra and Bailieborough in County Cavan and Lough Eglsh in County Monaghan in the Republtc of Ireland and at Newtownards in Northern Ireland, The Killeshandra Site carries out operatfons across two Business Units. The Casein, Whey and Lactose Powder operations on the site sit within the Food Ingredients Division while the UHT, ice-cream and Butter Portion Operations sit within the Food Services Division. The butter process involves packing of 'bulk butter' into mini-packs. The great malority of the milk powder and bulk butter for the Food Ingredients Division Is manufactured at Bailieborough while the greatest volume of UHT pmdUCtS is manufactured at Newtownards. Animal feeds for the 'Agti-Trading' Division are manufactured at Lough Egish. Environmental Impact Statement (EIS) - Laketand Dairies Co-operative Society Ltd (Eeltieboro) lear, Baitleborough, Co. Cavan EPA Export 25-07-2018:04:32:36 Figure 12 LocatIan af New Dryw Building 1.4 Harvest 2020 The Department of Agriculture, Fisheries and Food presented a strategy pollcy document to the Minister for Agriculture, Fisheries and Food in 2010, entitled "Harvest 2020". Grounded in facts and a careful analysis of industry, consumer and globs[ trends, Harvest 2020 identified the opportunityfor a dynamic, forward looking agri-food industry, It envisaged a sector that can reap considerable rewards if it works and acts 'smartly' so as to make the most productive use of Ireland's rkh natural 'green' resources in a way that is both economicallyviabte and sustainable in the future. Processing of milk into powdered products and infant formula Is part of the "Value- Added" Food and Beverage Sector programme of Harvest 2020, Two of the three pillars of the DepartmenYs strategy for growth In this sector are 40% growth in Value Added Output; Market Retention and Expansion. According to Harvest 2020's recommendations for future strategy tn the dairy sector: "Prospects for the dairy sector in the medium to long term are positive, Given projections for significwntly increased demand, the abolition of Ell milk quotos in 2015 presents a real opportunity for the Irish dairy sector, with a signifcant potential for increased milk production. The sector also possesses a signifcant cost advantage in the form of an environmentally sustainable rain fed gross based production system, which allows milk to be produced efficieentlyfar much of the year. However, for the sector to flourish at optimum level, efficiency gahs will be crucial at primary and processing revel, as= while prices are expected to rise, simultaneous increuses in rhe costs of agricultural production are ahprojected. The achievement of 1,3 Need for the Project a signifcant increase in milk output requires in the flrst Instance a milk price level and form cost structure that will pfovide viable form incomes and sus lain the family farm model. Effective measures at Ell level to mitigate price/income volatility will A milk quota is a measure used to bring rising milk production under control. Milk quotas are attached to land holdings, For and inspection purposes only. Consent of copyright owner required for any otheralso use. be important, while at a national levef, the issues of land uvailability and optimum processing capacity will have to be they represent a cap on the amount of milk that a farmer can sell every year without paying a levy, Milk quotas were first addressed. On the busis of available datu the Cornmlttee believes that a target of a 50 per cent increase in milk production by Introduced on 2ndApril 1984 under the European Economic Community now the European Community's Common Agricultural 2020 (using the averuge of the years 2007 to 2009 as a boseline) would he realistic and achievuble, ond that this will set the Policy. Originally they were to run until 1989, but they have been extended several times, and now will continue until the 31'' foundation fur further expansion in subsequent years. March 2015. This 2.75 billion litre increase would enhonce the primary output value of the sector by about K700 million with further Each member of the European Economic Community was allowed to produce daky products up tu a cap, which was based on downstream benefits in the form of Increased dairy product values, export earnings and employment. The report each state's 1981 production, plus 1% The cap was designated the ''reference quantity". A levy to the EEC was due on recommendations are designed to support the redisation of this potential growth ond to provide a sustainable return for production in excess of the reference quantity. This levy was then to be recovered from the farmers or dairies involved. competitive producers and processors. " When the quota system expires in 2015, a significant increase in mi[k production is expected from Irish farms. To cater for this increase, additional milk processing capacity Is required. This project represents a major investment in the dairy industry by Lakeland Dairies. Environmental Impact Statement (EIS) -Lakeland Dairies Cooperatke Sodefy Ltd (Bailiehoro) Lear, BallIeborough, Co. Cavan 2 EPA Export 25-07-2018:04:32:36 Milk Processing Recornmendatlons There are two stages which have been assessed as part of this development, the site preparation and construction phase and - The processing industry must move towards a small number of scaled operotors who have the scale and culture to drive the operational phase of the development. During the construction phase there will be all associated site works to facilitate efficiency and value added in line with key international competitors who have already achieved consolidation. construction. The proposed development is anticipated to be constructed over a 18 - 24 month period. Subject to a successful grant of planning, the works will commence in early 2015 (although the start date may be later depending on the final date of - The processing sector must ensure that processing capacity meets the expected increased milk supply post quotas. grant of permission and confirmation from the client to commence development works). 1.6 Timing of the Project - Given that indicative costings are believed to be in the region of €400m, the industry at all levels must engage on alternative options for financing the expansion in capacity to process anticiputed volume growth, including investigating efficient solutions It is intended that the facility will be operational for peak milk production in April 2016 to accommodate the increased milk to the processing of milk during the period of peak seasonal milk supply.
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