Lakeland Dairies chief executive Mr Dan Buckley has warned that the Irish dairy industry faces major challenges both on the home and international markets.

Mr Buckley told Lakeland's centenary dinner that the Cavan based co op would be looking for greater scale in its operations to allow it to compete, stronger investment in marketing and the maximisation of producer returns.

Lakeland is supporting the retention of milk quotas beyond the year 2000, but if it is decided that quotas should go, then they should be phased out over 10 years, Mr Buckley said.