The board of Lakeland Dairies has today (Wednesday, June 12) confirmed that its base milk price will remain unchanged for May supplies.
The processor said that a base price of 41.9c/L, based on 3.6% butterfat and 3.3% protein, will be paid for May milk in the Republic of Ireland.
The base price has been held from April and includes the 0.5c/l Sustainability Incentive Payment.
Lakeland said that a 1c/L Input Support Payment will continue to be paid on top of the base price.
This means that the “all-in base price” for Republic of Ireland suppliers is 42.9c/L for milk supplied in May.
In Northern Ireland, Lakeland said that a base price of 34.5p/L will be paid for milk supplied in May.
The base price for May has been held and includes the 0.5p/L Sustainability Incentive Payment.
A 0.8p/l Input Support Payment continues to be paid to all NI suppliers. The all-in price for suppliers in NI is 35.3p/L for May.
Lakeland Dairies
In a statement, the co-op noted that “although weather conditions have improved and become more manageable in general, challenges around grazing and grass growth remain”.
“Therefore, we have decided to maintain the input support payment to support our farmers at this time.
“While sentiment around global dairy markets have turned more positive in recent weeks, there is some uncertainty over the long-term activity of buyers in the market.
“Global supplies remain subdued which is the main determining factor in the recent volatility of the markets.
“Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers as best we can,” the processor added.
In advance of the milk price announcements by processors for May supplies, farm organisations called for increased returns for dairy farmers.
The Irish Farmers’ Association (IFA) Dairy Committee chair Stephen Arthur said that markets are improving for dairy products, with the Global Dairy Trade (GDT) showing an improvement of 1.7%.
He also pointed to the latest Ornua Purchase Price Index (PPI), announced last week, which implies an indicative return of 39.6c/L, an increase of 1.1c/L on the PPI for April.
“An increase in price is needed to alleviate the cashflow pressure on suppliers and it is essential that processors start returning the value gained in the market back to farmers,” he said.
The Irish Creamery Milk Suppliers’ Association (ICMSA) also stated that dairy markets have moved on “considerably” during May.
“Not only do dairy farmers need an increase in milk price, the market justifies it and dairy farmers need a strong signal from their milk processor that they understand the pressures on them at present by the delivery of a strong milk price increase for May,” ICMSA Dairy Committee chair Noel Murphy said.