Further consolidation in the dairy processing sector is inevitable, given the lower overall milk supply, and the shift in focus from volume growth to improved efficiency and innovation, according to both Colin Kelly and Karina Pierce. “I’m sure there will be more consolidation once it’s right for co-ops and their farmers.
Further consolidation in the dairy processing sector is inevitable, given the lower overall milk supply, and the shift in focus from volume growth to improved efficiency and innovation, according to both Colin Kelly and Karina Pierce.
“I’m sure there will be more consolidation once it’s right for co-ops and their farmers.
“At Lakeland Dairies, if it makes sense for our farm families, we will be part of those discussions,” Kelly insisted.
“There is nothing new about consolidation in the dairy industry. Every co-op in the country is the product of mergers, acquisitions, and tie-ups,” the Lakelands Dairies CEO added.
Karina Pierce maintained that the “tightening milk supply” will “expedite consolidation. Some level of consolidation is healthy to improve efficiencies brought about by scale and enhance innovation”, Pierce maintained.
However, while Kelly accepted that “operational efficiencies and greater returns for farmers can be generated by having fewer co-ops on the island”, he said businesses also needed to be “agile, lean, and right-sized”.
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