Lakeland Dairies £24.5m Ballyrashane Investment Signals Confidence in NI Agri-Food Sector
Lakeland Dairies has announced a £24.5 million investment at its Ballyrashane processing facility near Coleraine, backed by £2.5 million from Invest Northern Ireland, to expand liquid milk packing and butter production capacity at one of the most significant dairy processing sites in the north Antrim area — a development that has been welcomed by the Economy Minister as evidence of continued confidence in Northern Ireland's agri-food sector.
Background
Lakeland Dairies is one of the largest dairy co-operatives on the island of Ireland, with processing facilities on both sides of the border and a membership of thousands of dairy farmers across Ulster, Connacht, and Leinster. The Ballyrashane facility near Coleraine has been a cornerstone of the company's Northern Ireland operations for decades, processing milk from farms across the north Antrim and Causeway Coast area into a range of liquid milk and butter products for both domestic and export markets.
The agri-food sector is Northern Ireland's largest manufacturing industry, accounting for approximately a quarter of all manufacturing output and employing tens of thousands of people directly and indirectly. The sector has navigated significant challenges in recent years, including the disruption caused by Brexit to cross-border supply chains, the impact of the Northern Ireland Protocol and its successor arrangements on trade with Great Britain, and the volatility of global commodity prices. Despite these challenges, the sector has remained resilient, and investment announcements of the kind made by Lakeland Dairies are a positive signal for its long-term prospects.
Invest Northern Ireland, the regional economic development agency, has been a consistent supporter of agri-food investment, recognising the sector's importance to the rural economy and its potential for export growth. The £2.5 million support package for the Ballyrashane investment is consistent with the agency's strategy of leveraging private investment through targeted public support.
Key Developments
The £24.5 million investment at Ballyrashane will expand the facility's liquid milk packing capacity and increase butter production, enabling Lakeland Dairies to meet growing demand from both domestic and export customers. The investment includes new processing equipment, upgraded cold storage facilities, and improvements to the site's environmental management systems.
The announcement was welcomed by Economy Minister Conor Murphy, who described it as a vote of confidence in Northern Ireland's agri-food sector and in the skills and expertise of the workforce at Ballyrashane. The Minister noted that the investment would safeguard existing jobs at the facility and create additional employment in the north Antrim area, which has historically had higher unemployment rates than the Belfast metropolitan area.
Lakeland Dairies chief executive Colin Kelly said the Ballyrashane investment was part of the company's broader strategy of investing in processing capacity to add value to the milk produced by its farmer members. He noted that the dairy sector faces significant challenges from climate change and changing consumer preferences, and that investment in modern, efficient processing facilities is essential to the sector's long-term competitiveness.
Why It Matters
The Ballyrashane investment is significant for several reasons. First, it demonstrates that major agri-food companies continue to see Northern Ireland as an attractive location for investment, despite the uncertainties created by Brexit and the ongoing budget crisis at Stormont. This is not a given — several agri-food companies have relocated processing capacity to the Republic in recent years, citing the advantages of operating within the EU single market.
Second, the investment has a direct impact on the farming community in north Antrim and the Causeway Coast area. Lakeland Dairies' farmer members in this region depend on the Ballyrashane facility to process their milk, and the expansion of capacity means that the facility will be able to handle increased volumes as the dairy herd in the area grows. This is particularly important given the pressure on dairy farmers from rising input costs and volatile milk prices.
Third, the investment is a reminder of the importance of the agri-food sector to Northern Ireland's rural economy. Unlike the tech sector, which is concentrated in Belfast and a few other urban centres, agri-food processing is distributed across the region, providing employment in areas that have few alternative sources of well-paid manufacturing jobs.
Local Impact
In Coleraine and the surrounding north Antrim area, the Lakeland Dairies announcement has been welcomed by local politicians, business groups, and farming organisations. The Causeway Coast and Glens Borough Council area, which includes Ballyrashane, has been working to attract investment to offset the decline of traditional industries, and the Lakeland Dairies expansion is a significant addition to the local economy. Local dairy farmers have expressed relief that the facility is being expanded rather than consolidated, which would have reduced the options available to them for processing their milk.
What's Next
Construction work at the Ballyrashane facility is expected to begin in the coming months, with the expanded capacity coming on stream in 2027. Lakeland Dairies has indicated that it will work with local schools and colleges to develop apprenticeship and training programmes linked to the new investment, building on the existing skills base in the area. Invest Northern Ireland will monitor the investment's progress and report on its economic impact as part of its annual review of supported projects.
