Lakeland Dairies has become the first co-op to set its July 2022 milk price.
A spokesperson for the processor issued a statement earlier this afternoon (Thursday, August 11th, 2022).
In the ROI, the spokesperson outlined, Lakeland Dairies has increased its milk price by 2.25 cent/litre to pay 57.35 cent/litre inclusive of VAT for milk at 3.6% fat and 3.3% protein.
According to the processor, on average, the Lakeland Dairies payout in ROI will be 60.6 cent/litre for July milk.
In ROI, all fixed milk price contracts will receive an 8 c/litre supplementary payment.
In Northern Ireland, Lakeland Dairies has increased its milk price by 2.0 p/litre to 46 p/litre.
On average, Lakeland Dairies will pay out 47.42 pence/litre for June milk in Northern Ireland, including adjustments for constituents and quality, and volume bonuses and zero cartage charges.
Furthermore, in Northern Ireland, all fixed milk price contracts will receive a 7 p/litre supplementary payment.
July 2022 milk price
The spokesperson pointed out that ongoing buoyancy in dairy markets is “starting to level off”.
Auction prices are “well down” from recent highs, and there is a “cooling off” in demand for higher-priced product categories.
They pointed to global economic conditions, including severe inflation, high input costs at farm and processing levels and rising interest rates, aligned with seasonality and weather events, which they added, will continue to impact the international balance of supply and demand.
“Consumer sentiment is being affected by generally increasing costs across all kinds of goods and services including food and energy.”
“Lakeland Dairies continues to monitor market developments,” the spokesperson concluded.
Speaking in advance of the imminent round of milk price announcements by the Co-ops,
Meanwhile, earlier this week, ICMSA dairy chairperson, Noel Murphy, stated that the association expects farmer prices to hit 57c/L for July supplies.
Murphy noted that the Ornua base PPI is returning over 57c/L before added value, and markets have “stabilised” at this higher level.
“Returns from across the globe remain strong in what has been a solid year so far for dairy products, despite the easing of prices on wholesale markets such as the GDT in the last number of weeks.”
“Dutch Dairy Quotes returns for Butter and Skimmed Milk Powder dipped below 60c/L in July, despite returning prices above 60c/L since the middle of March earlier this year.”
“A similar pattern has also emerged for whole milk powder. We are taking this as the traditional ‘settling down’ and reduction in trading associated with the holiday period, but the underlying strength cannot be doubted.”
“The minimum price we will accept as presenting that strong market is 57c/L going forward in the final quarter of the year,” he concluded.
See more on milk prices on That’s Farming.