Lakelands increases September milk price as global milk flow slows

Lakeland Dairies has announced a September milk price of 38c/l excluding VAT for Republic of Ireland suppliers.

The base price will be paid based on 3.6% butterfat and 3.3% protein and is inclusive of the 0.48c/l ex-VAT sustainability bonus.

This is an increase of 0.57c/l on August supplies.

Lakeland Dairies said that “while global milk flows remain ahead of last year, the rate of growth is continuing to slow”.

The co-op said that this, in addition to a solid demand, has seen the market strengthen across the last number of months.

“As we look forward from a demand perspective, macroeconomic factors such as oil and energy pricing, consumer sentiment, interest rates and general inflation will be the biggest variables in the short to medium term.

“Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers with the best milk price possible in line with market conditions.”

In Northern Ireland, a base price of 31.9p/l will be paid for milk supplied in September, which is also inclusive of the sustainability incentive payment. This is an increase of 0.5p/l.