140 temproary lay-offs at Lakeland Dairies

 

Lakeland Dairies, one of the region's largest employers, has temporarily laid off 140 staff due to the impact of Covid-19 on the global economy.
The plant most impacted by the lay-offs is Killeshandra, where the processor manufactures UHT, butter and ice cream.

Some ice-cream staff will be back as early as next week.
It is understood the plan has been "agreed" with employees, and will include staff using up annual leave and short-time working, as well as the temporary layoffs.
There are no permanent redundancies, the company has said.
Earlier this week, Lakeland announced it was to cut to the price it pays farmers for milk, also due to the impact of Covid-19 on dairy markets.
In the Republic of Ireland, a price of 30c/L (including VAT and lactose bonus) will be paid for milk supplied in March, a reduction of 1.81c/L on the February base price.
In Northern Ireland, a base price of 23.75p/L will be paid for March milk, down 1.5p/L.
Lakeland Dairies said in a statement that the fallout from the global Covid-19 pandemic is having a dramatic impact on the dairy markets.
“As the COVID-19 pandemic has continued across the globe the global dairy markets have collapsed.
“The food service sector across Europe has suffered near wipe-out following the closure of restaurants, cafes, hotels, while airlines have grounded many planes. Food service is an important route to market for Lakeland Dairies and many dairy processors across Europe.”
The spokesperson for Lakeland Dairies explained that prices for butters, powders and cheeses are under significant downward pressure as food service milk is now flooding into powders and butter.
“Closer to home, sales of fresh milk and butter in retail outlets have increased somewhat but this increase has not offset the drop off in sales in the food service market.
“Reports from the UK and the USA where farmers have been forced to dump to milk as a result of a fall off in demand, mainly in the food service sector, has had a serious negative impact on the market,” Lakeland Dairies added.
“The markets are difficult at present and Lakeland Dairies will continue to monitor developments closely in the coming days and weeks,” the spokesperson concluded.