Cavan-based Lakeland Dairies, the State's second largest co-op, is targeting a 30-40 per cent increase in production by 2020.
With the ending of milk quotas, the group has been slowing building capacity with a new milk powder drying facility in Baileboro operating since 2010 and another one on the way.
Lakeland's chief executive Michael Hanley told The Irish Times the co-op expects to be processing 1.1 billion litres of milk within five years, with most of the additional produce going to emerging markets in Asia, Africa and the Middle East.
Announcing its results for 2014, the group said its pre-tax profits increased by 5 per cent to €10.9 million last year despite the collapse in milk prices.
The co-operative, which exports to over 70 countries, said revenues increased by 15 per cent to €625 million against what it described as “difficult market conditions”.
Revenue in its main food ingredients division rose by 22 per cent to €377.9 million, while revenue in its foodservice division increased by 12 per cent to €190.3 million
The group recently started construction on a third milk powder processing facility at its main Bailieboro campus in Co Cavan, which will be the biggest in the country.
It said it expects annual production of milk powders to increase by nearly 50 per cent to 130,000 tonnes once the €36 million facility becomes operational at the end of 2016, with the bulk of it heading for Asia’s growing infant formula market.
Earlier this year, the company bought frozen-yogurt maker Taste Trends, maker of the popular Coolicious brand, giving it a major foothold in the UK market.
It also completed a new €10 million global logistics centre at its foodservice processing centre in Newtownards, Co Down.
The automated facility with over 14,000 individual pallet spaces and robotic systems is designed to manage, assemble and prepare consignments for export.
Mr Hanley said: “These are very robust results, set against difficult market conditions in 2014, where Lakeland Dairies also paid a competitive milk price.”
“Worldwide usage of dairy ingredients and foodservice dairy products is driven by global trends including wellness, convenience, safety and sustainability. This is advantageous to Lakeland Dairies where we are specialists in key areas including protein technology, aseptic manufacturing processes, emulsion technology and spray drying technology,” he added.
