Lakeland Dairies has set its milk price for May 2023 supplies, becoming the first to do so.
The board of Lakeland Dairies decided the co-operative’s milk price for May, “reflecting present market conditions”.
The board, a statement from the processor to www.thatsfarming.com reads, has discontinued the monthly Input Support Payment (previously 1.5 cent/litre in ROI and 1.5 p/litre in NI), which was first established in August 2022 onwards.
In the Republic of Ireland, Lakeland Dairies will pay a base price of milk for May at 37.35 cent/litre of VAT, for milk at 3.6% fat and 3.3% protein.
Meanwhile, in Northern Ireland, Lakeland Dairies will issue a base price of milk for May at 30 p/litre.
The spokesperson noted that the rate of growth in global milk supply is “slowing, but it still exceeds demand”.
“With economic volatility still a factor, there is generally weaker consumer sentiment in markets across the world.”
“Dairy buyers continue to be reserved in their current and forward-looking buying patterns.”
Lakeland Dairies re-iterated its commitment to “paying the highest possible milk price”, in line with market conditions, and says it continues to monitor market developments closely.
April milk price
Last month, we reported that in the Republic of Ireland, Lakeland Dairies reduced its 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.
A spokesperson noted in a statement at the time that the overall inflationary climate continues to affect consumer sentiment and buying patterns.
They 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.
