Lakeland Dairies has become the first milk processor to announce its price for October 2021 supplies.
The board of Lakeland Dairies has increased the co-operative’s milk price for October.
In a statement to That’s Farming on Thursday, November 11th, 2021, a spokesperson for the milk processor said:
“In the Republic of Ireland, Lakeland Dairies has increased its milk price by 0.5 cents per litre and will pay a base milk price of 38cpl, including VAT, for milk at 3.6% fat and 3.3% protein.”
“Meanwhile, in Northern Ireland, Lakeland Dairies has increased its milk price by 0.4 pence per litre and will pay a milk price of 30.5p/litre.”
“Global dairy markets remain strong at present with continuing restrained milk supply across Europe, New Zealand and the United States.”
The spokesperson said that “strong” purchasing and consumption from Asia is also a “key” market driver.
Lakeland Dairies confirmed that it will continue to monitor the market “closely” in the weeks ahead.
Last month, the milk processor paid its member suppliers 36.6c/L (including VAT) for September creamery milk supplies at 3.6% butterfat and 3.3% protein.
For September, it paid a base milk price of 36.18c/L (including VAT) for creamery milk at 3.6% fat and 3.3% protein.
October milk price must be above 40c/L
Last week, the ICMSA announced that it expects milk processors to pay above 40c/L for October 2021 milk supplies.
It revised its predicted prices for October 2021 milk supplies following a meeting of its dairy committee.
ICMSA’s dairy committee, chairperson, Gerald Quain, in a statement on Friday, November 5th, 2021, said:
“The serious upward momentum behind the rise in dairy markets should result in substantial rises in base milk prices for October milk.”
“Even without added value, the Ornua PPI is showing prices rising by over 1c/L. When added-value is accounted for, the price is well in excess of 40c/L.”
See more milk price updates.