Lakeland Dairies Invests £24.5m at Ballyrashane as Agri-Food Sector Drives Coleraine Jobs
Lakeland Dairies has confirmed a £24.5 million capital investment at its Ballyrashane processing facility near Coleraine, supported by £2.5 million in funding from Invest Northern Ireland, in a move that will significantly expand the site's liquid milk packing and butter production capacity and reinforce the north Antrim area's status as a centre of agri-food manufacturing excellence.
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 base of thousands of dairy farmers across Ulster and the northern counties of the Republic. The Ballyrashane site, located a few miles outside Coleraine in County Antrim, has been a cornerstone of the company's Northern Ireland operations for decades, processing milk from farms across the north Antrim and Londonderry hinterland.
The agri-food sector is Northern Ireland's largest manufacturing industry, accounting for around a quarter of all manufacturing output and employing tens of thousands of people directly and indirectly across the region. Dairy processing is one of the sector's most significant sub-sectors, with Northern Ireland's grass-based farming system producing milk of a quality that commands premium prices in export markets across Europe and beyond.
The investment at Ballyrashane comes at a time of significant pressure on the dairy sector, with input costs — particularly fertiliser and energy — having risen sharply in recent years. The ability to invest in processing efficiency and capacity is therefore particularly significant, as it allows the co-operative to maintain competitive margins even as farm-gate costs remain elevated.
Key Developments
The £24.5 million investment will be used to upgrade and expand the Ballyrashane site's liquid milk packing lines and butter production facilities. The project will increase the site's throughput capacity, allowing it to process a greater volume of milk from member farms and to produce a wider range of value-added dairy products for both domestic and export markets.
Invest Northern Ireland's £2.5 million contribution reflects the agency's assessment of the project's strategic importance to the regional economy. The investment is expected to safeguard existing jobs at the Ballyrashane site and create a number of new positions, though the precise employment figures were not disclosed at the time of the announcement.
The investment is part of a broader pattern of capital expenditure across the Lakeland Dairies group, which has also announced a major investment programme at its Republic of Ireland facilities. The cross-border nature of the co-operative's operations means that investment decisions on one side of the border often have implications for the other, and the Ballyrashane announcement is seen as a signal of confidence in Northern Ireland's agri-food processing sector.
Why It Matters
The Lakeland Dairies investment is significant for several reasons beyond the immediate job creation and economic activity it will generate. It represents a vote of confidence in Northern Ireland's agri-food sector at a time when the industry faces genuine uncertainty about its long-term competitive position, particularly in the context of post-Brexit trading arrangements and the ongoing pressure to reduce the environmental footprint of dairy farming.
The Ballyrashane facility sits in an area of north Antrim where the agri-food sector is the dominant employer and where the economic consequences of any reduction in processing capacity would be felt acutely. The investment ensures that the site remains competitive and capable of handling the volumes of milk produced by the surrounding farming community for the foreseeable future.
For context, Northern Ireland's agri-food sector has attracted more than £500 million in capital investment over the past five years, making it one of the most consistently invested sectors in the regional economy. The Lakeland Dairies announcement adds to that total and reinforces the sector's position as a reliable engine of economic activity in rural Northern Ireland.
Local Impact
The Ballyrashane facility is a significant employer in the Coleraine area, and the investment will be welcomed by the local community as a sign of long-term commitment to the site. The north Antrim area has a strong tradition of agri-food employment, with a number of major processing facilities operating in the Coleraine, Ballymoney and Ballymena areas. The Lakeland Dairies investment reinforces that tradition and provides a degree of economic certainty for workers and their families in the area.
The investment will also benefit the dairy farmers who supply milk to the Ballyrashane facility. Increased processing capacity means that the co-operative can handle larger volumes of milk, which in turn provides greater security for member farmers who might otherwise face uncertainty about where to sell their production during periods of high output.
What's Next
Construction work at the Ballyrashane site is expected to begin in the third quarter of 2026, with the upgraded facilities scheduled to be operational by the end of 2027. Lakeland Dairies will work with local contractors and suppliers where possible, in line with its commitment to supporting the regional economy. The company's annual general meeting, scheduled for later in the year, will provide an opportunity for member farmers to receive a full briefing on the investment and its expected impact on the co-operative's processing capacity and financial performance.
