Lakeland Dairies has suggested that it is the co-op’s support for milk suppliers rather than market dynamics that drove the processor to announce a 0.48c/l increase to May’s base milk price.

Lakeland Dairies’ suppliers are to receive a base price of 35.40c/l ex VAT for May’s milk along with a 0.48c/l ex VAT sustainability incentive payment.

“While milk pricing is increasing, it is more a function of support rather than market conditions,” the co-op said.

“Milk supply remains strong and continues to influence the market, while demand has weakened since last month.

“Powder and butter prices have eased slightly and geopolitical factors continue to weigh on overall conditions.”

Base price

Lakeland Dairies is to pay Northern Ireland suppliers a base price of 30.1p/l, inclusive of the sustainability incentive payment, for last month’s milk.

The co-op has stated that it will “continue to monitor the markets and will endeavour to support our farmers with the best milk price possible in line with market conditions”.