Two of the largest and longest-established agricultural co-operatives in the North East of Ireland, Lakeland Dairies, headquartered in Balieborough, Co Cavan and Fane Valley, headquartered in Armagh City have agreed to form two major cross-border joint venture businesses to run their combined dairy and agri-business operations respectively.

The first joint venture will merge both societies’ animal feed manufacturing, sales and retail stores activities.

Fane Valley is already the second largest animal feed manufacturer in the North and the new venture will have the capacity to produce up to half a million tonnes of every year; it will be managed by Fane Valley and Lakelands will be a partner and shareholder in the business.

The dairy joint venture business will be managed by Lakelands, which itself is the second largest co-op in the Republic, and Fane Valley will be a partner and shareholder.

It will have projected revenues of €670m and process over one billion litres of milk per annum from both sides of the border.

Both co-ops will otherwise continue to operate on an independent basis with separate activities outside agri-business and dairy but have held out the prospect of a full merger within the next three to five years.