Lakeland Dairies cuts October milk price

Lakeland Dairies suppliers are to receive a steeper milk price reduction for October’s milk than they got for September’s.

The co-op has applied a 3.81c/l, excluding VAT, cut to the base milk price for last month.

A base price of 37.82c/l excluding VAT is to be paid on October supplies in addition to a 0.5c/l sustainability payment due to eligible suppliers.

In Northern Ireland (NI), a price of 32.3p/l will be paid for milk including the sustainability payment.

The co-op has said that the price it will pay out on average constituents comes to 48.44c/l excluding VAT for October.

Pressure

Last month’s milk price announcement from Lakeland Dairies brought a 2.85c/l excluding VAT cut to suppliers’ base milk price, following a 0.95c/l decrease for August’s milk.

“Significant market pressure persists as global milk supplies continue to grow from an already strong base,” a spokesperson for the co-op said.

“Demand is struggling to keep up, which is impacting on butter, cheese and powder returns, adding continued pressure on farmgate prices.

“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.”