Lakeland Dairies has, this afternoon (Wednesday, May 10th, 2023), become the first processor to set its milk price for April 2023 supplies, with a further 4c/L cut to suppliers’ cheques.
In a statement to That’s Farming, a spokesperson confirmed the co-operative’s decision to reduce milk price, a move which they say is “reflecting ongoing market conditions”.
In the Republic of Ireland, Lakeland Dairies has reduced the milk price by 4 cent/litre to 38.85 cent/litre of VAT, for milk at 3.6% fat and 3.3% protein.
The April price includes an input support payment of 1.5 cent/litre, inclusive of VAT, for all suppliers.
Meanwhile, in Northern Ireland, Lakeland Dairies has reduced the milk price 3.5p/litre to 31.5p/litre.
The April price includes a supplementary input support payment of 1.5 p/litre.
In a statement to this publication, a spokesperson outlined that the balance of global supply and demand remains “outweighed” by a stronger level of supply with reduced market returns “, a continuing factor” based on modest demand from buyers.
“The overall inflationary climate continues to affect consumer sentiment and buying patterns.”
“Lakeland Dairies will strive consistently to pay the highest milk price feasible, as sustainably as possible and despite ongoing uncertainty in the current market conditions.”
“The co-operative is continuing to monitor market developments closely,” the spokesperson concluded.
Jan & Feb milk price
Last month, That’s Farming reported that the processor reduced its milk price for February supplies on the back of what it has described as “weaker” dairy market conditions which continue to have a “serious” impact on market returns.
In the Republic of Ireland, the processor reduced its milk price by 6 cent/litre to 46.85 cent/litre inclusive of VAT for milk at 3.6% fat and 3.3% protein.
The February price included an input support payment of 1.5 cent/litre, inclusive of VAT, for all suppliers.
Meanwhile, in Northern Ireland, Lakeland Dairies reduced the milk price by 4p/litre to 38.5 p/litre, which also included a supplementary input support payment of 1.5 p/litre.
Milk price has reduced every month so far this year, with the processor making an initial 6c/L cut to January supplies following consideration of “all current market conditions”.