Lakeland Dairies, has this afternoon (Monday, March 13th, 2023) become the first milk processor to set its February 2023 milk price, writes farming journalist, Catherina Cunnane.
The board of Lakeland Dairies has, confirmed in a statement to That’s Farming, its decision to reduce the co-operative’s milk price for February 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 has reduced the 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 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 by 4p/litre to 38.5 p/litre. The February price includes a supplementary Input Support Payment of 1.5 p/litre.
The spokesperson outlined:
“While markets firmed somewhat over the past month, this has come from a low-level base of current prices.”
“Generally weaker conditions have continued due to higher global milk supplies and fluctuating demand from dairy buyers.”
“This is against a backdrop of economic uncertainty with ongoing inflationary pressures impacting consumer, trade and manufacturing requirements for dairy products and ingredients.”
“Overall, outcomes remain unpredictable, and there is continuing variability which will remain a feature of global markets for the immediate period ahead.”
Lakeland Dairies reaffirmed that it will seek “constantly” to maximise returns for milk suppliers and will pay “as competitive a milk price” as possible in line with market conditions.
January 2023 milk price
Last month, Lakeland Dairies reduced its milk price for January supplies, following consideration of “all current market conditions”.
In the Republic of Ireland, it reduced its milk price by 6 cent/litre to 52.85 cent/litre inclusive of VAT, for milk at 3.6% fat and 3.3% protein.
The January price includes 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 5p/litre to 42.5 p/litre. The January price includes a supplementary Input Support Payment of 1.5 p/litre.
Read more on this farming news article.