Lakeland Dairies has become the first processor to announce its milk price for April 2022 supplies.
Earlier this evening (Tuesday, May 10th, 2022), the board of Lakeland Dairies confirmed that it has decided the co-operative’s milk price for April.
In a statement to That’s Farming, a spokesperson for the processor said:
“In the Republic of Ireland, Lakeland Dairies has increased its milk price by 3 cent/litre to pay 50.1 cent/litre inclusive of VAT, for milk at 3.6% fat and 3.3% protein.”
“On average, the Lakeland Dairies payout in ROI will be 53.02 cent/litre for April milk.”
“In Northern Ireland, Lakeland Dairies has increased its milk price by 2.5 p/litre to 40 p/litre.”
According to the statement, on average, Lakeland Dairies will pay out 42.1 pence/litre for April milk in Northern Ireland.
This includes adjustments for constituents and quality, volume bonuses and zero cartage charges.
The spokesperson noted that dairy markets are “balanced, with an uptick in milk supply”.
However, they noted that a demand challenge is now emerging as higher prices feed through to consumers.
Inflationary pressures, they added, continue to “bite” at farm, processor, food production and consumer levels.
“Some key Asian markets remain significantly impacted by the pandemic, and the war in Ukraine continues to affect market sentiment on a global basis,” the spokesperson noted.
“However, the overall view is that the markets will continue to provide good returns for the foreseeable future.”
Lakeland Dairies said it will continue to monitor market developments.
Milk price increases
Earlier today, Stephen Arthur said dairy farmers are due a “significant” increase in the April milk price.
The IFA dairy chairman revealed that “this is more than justified” based on the returns Irish processors are getting for dairy products.
Arthur said a comparison between the current Ornua Purchasing Price Index (PPI) and April 2021 shows an increase of almost 60% for dairy products sold through Ornua.
IFA estimates the milk price paid to farmers has only increased by 36% during the same period.