Lakeland Dairies has sold its 16 agri-trading shops for over €20 million, according to a company statement issued yesterday.

The sale was part of the co-operative's restructuring programme which it announced earlier this year.

The stores at Losset, Templeport, Corrigan, Kilnaleck, Grousehall and Carrickallen in Co Cavan, and at Gortermone, Co Longford, have been purchased by the tenants who have been operating the stores on a franchise basis for a number of years.

"These stores will continue to operate as agri-trading outlets going forward. The remainder of the stores have been purchased by Heron Limited, a Derry-based company," said the statement.

A spokesman for Lakeland Dairies expressed satisfaction that the stores had achieved well in excess of the guide price of €20 million and that a substantial number of them were to remain trading, thus providing a continuing service to Lakeland Dairies' suppliers and shareholders.

Also, the spokesman stressed that Lakeland Dairies would now move quickly to establish alternative outlets for their feedstuffs in the areas where they had traditionally operated stores.

Last September, Lakeland announced nearly 150 job cuts as part of an €8 million restructuring package to help it cope with the current trends in the markets.

The second largest dairy co-operative milk processor in the State then signalled its intent to exit all branch trading in its agri-store network which has now been sold.

It also said it would cease milk drying operations at Lough Egish, Co Monaghan. This will increase milk throughput at other Lakeland facilities and will optimise the utilisation of plant and resources.

Milk processing operations are to be consolidated to other processing sites at Bailieboro, Killeshandra and Newtownards.

The pig and poultry feed mill and grain intake site at Castlebellingham, Co Louth, were also to be closed and sold by the end of this year.

The co-operative blamed volatile markets, driven by the Fischler reforms, intense competition from New Zealand and Australia, increased energy costs and reduced EU supports as the reasons for the rationalisation.

In July last the co-operative recorded an operating loss of €5.7 million for the year, before exceptional items and after interest charges.

This compared to a profit of €830,000 in 2004. Turnover fell from €442.5 million to €420.3 million.