Lakeland Dairies has become the first processor to set its October 2022 milk price.
The board of Lakeland Dairies has confirmed the co-operative’s milk price for last month’s supplies.
In the Republic of Ireland, it has maintained the price of 58.85c/L inclusive of VAT, for milk at 3.6% fat and 3.3% protein.
This includes a supplementary input support payment of 1.5c/L, inclusive of VAT, for all suppliers, including fixed milk price contracts.
In ROI, all fixed milk price contracts will receive an 8 c/L supplementary payment, plus the additional 1.5c/L input support payment.
In Northern Ireland, the processor has maintained the price of 47.5 p/litre – which includes an input support payment to the value of 1.5 p/litre.
In NI, all fixed milk price contracts will receive a 7p/L supplementary payment, plus the additional 1.5p/L input support payment.
Growing pressure in global markets
A spokesperson for the processor said:
“Global dairy markets, including Asian markets, have remained under growing pressure in recent months with prices and demand both weakening very significantly in the past month.”
“Geopolitical and economic issues, including inflation, interest rates and energy pricing, continue to affect overall market dynamics at every level.”
“These factors are leading to reduced demand where sentiment among dairy buyers and consumers is becoming severely challenged in line with increasingly volatile market circumstances.”
Lakeland Dairies, the spokesperson, outlined, will “continue to monitor” market developments.
Last month, a spokesperson on behalf of the processor said it recognises the rising costs of all farm inputs and payable for all suppliers, including fixed milk price contracts.
The spokesperson pointed to global dairy markets, which continue to reflect ongoing economic volatility, including inflation and concerns relating to energy pricing and the overall cost of living.
Moreover, the spokesperson reported that the Asian market demand has also “softened further”.
Read more on this news article.
See more milk price updates.