Lakeland Dairies has confirmed that it has increased its milk price for June 2022 supplies.
Its announcement yesterday evening (Monday, July 11th, 2022), follows Kerry Group’s.
In a statement to That’s Farming, a spokesperson for the processor said:
“The board of Lakeland Dairies has decided the co-operative’s milk price for June.”
In the ROI, Lakeland Dairies has increased its milk price by 3 cent/litre to pay 55.1 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 57.88 cent/litre for June milk.”
Furthermore, in ROI, all fixed milk price contracts will receive an 8 c/litre supplementary payment.
Meanwhile, in Northern Ireland, Lakeland Dairies has increased its milk price by 2.5 p/L to 44 p/L.
On average, Lakeland Dairies will pay out 45.46p/L for June milk in Northern Ireland. This, according to the processor, will include adjustments for constituents and quality, and volume bonuses and zero cartage charges.
In NI, all fixed milk price contracts will receive a 7 p/litre supplementary payment.
Seasonality, higher input costs and inflationary pressures
The spokesperson continued:
“The dairy markets continue to yield strong returns given limited milk supply growth from key dairy producing regions due mainly to seasonality and higher input costs.”
“Inflationary pressures continue to impact at every level of the dairy supply chain from farming, through processing and food manufacturing and onwards into the market.”
“Current market conditions will continue to provide good returns for the foreseeable future. Lakeland Dairies continues to monitor market developments,” the spokesperson concluded.
Kerry Group: May milk price
Kerry Group has become the first milk processor to set its price for May 2022 supplies.
It has increased its base milk price by 2c/L on last month’s 49.5c/L (including VAT).
In a statement to That’s Farming on Thursday, June 9th, 2022, a spokesperson for the milk processor, said:
“Our Kerry Group base price for May milk supplies will increase to 51.5c/l incl VAT at 3.30% Prot/3.60% Bfat and 56.39c/l incl Vat at EU standard constituents 3.40% Prot/4.20% Bfat”.
“Based on Kerry’s average milk solids for May, the milk price return inclusive of VAT and bonuses is 54.69c/L,” the spokesperson concluded.