Lakeland Dairies, has this afternoon (Friday, August 11th, 2023), become the first processor to set its milk price for August 2023 supplies.
In a statement to www.thatsfarming.com, a spokesperson confirmed that the processor will pay a price of 35.5c/litre (3.6% butterfat and 3.3% protein) for July milk in the Republic of Ireland.
This represents a reduction of 1.85c/l on the June price of 37.35c, as reported by us in this news article and “represents market conditions”, according to the processor.
Meanwhile, in Northern Ireland, it will pay a base price of 28.5p/litre for milk supplied in July, which represents a reduction of 1.5p/l on the June price of 30p/L.
The spokesperson noted that “global demand for dairy products remains sluggish”.
“This weak demand is being met by resilient milk supplies in many of the larger production areas, resulting in a continued imbalance between supply and demand.”
“Subdued sentiment from international buyers is being heightened by an economic slowdown in many parts of the world, particularly China and Asia.”
“Lakeland Dairies continues to closely monitor the markets to return the best possible milk price for our 3,200 farm families,” the spokesperson added.
When announcing June’s milk price, the processor noted that “dairy markets have remained uncertain over the past month with demand for products subdued”.
“Milk production in many of the main dairy regions remains up on last year albeit the rate of growth has slowed.”
“This is resulting in the supply/demand dynamic remaining out of line, which is contributing to this market uncertainty,” the spokesperson added.
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See more farming news on www.thatsfarming.com