Lakeland Dairies has announced the rollout of new fixed milk price scheme for its suppliers, which will pay up to 38.6c/l excluding VAT.
The voluntary scheme is available for all 3,200 of the co-op’s suppliers in the Republic of Ireland and Northern Ireland. It will run from January to December 2024 and will allow Lakeland Dairies suppliers to lock in either 5% or 10% of their milk, based on 2022 volumes.
In the Republic of Ireland, a price of 37.62c/l, excluding VAT, is available under the scheme for the months of April to September with a price of 38.6c/l, excluding VAT, available for October to March. Both fixed prices will be paid out at 3.3% protein and 3.6% butterfat.
In Northern Ireland, a price of 32.5p/l is available for the period April to September, with a price of to 33.5p/l available for October to March.
Applications to partake in the scheme can be made by Lakelands suppliers online via the co-op’s website from 9am on Wednesday 25 October and close on Friday 27 October at 12pm. The fixed milk price scheme is also eligible for all existing Lakeland Dairies bonuses.
The processor’s milk suppliers received a text informing them of the new deal at 7am on Tuesday morning.
Lakeland Dairies’ CEO Colin Kelly said the co-op is “acutely aware of the volatility of global dairy markets over the past 18 months, with record high farmgate prices in 2022 being followed by an unprecedented market collapse throughout 2023”.
“At all times, we seek to offer our farm family suppliers tools and measures to help mitigate against the worst of market downturns.
“Despite challenges experienced by some farmers nationally with fixed milk price schemes last year, we feel they have been proven to be a useful tool in helping to manage milk price volatility over the last decade. They give farmers a degree of clarity which allows them to plan for the time ahead,” he said.
Kelly added that the new fixed prices being offered by Lakelands offer farmer suppliers a competitive price based on current and future market projections and conditions.
“We’re asking suppliers to examine the details of the voluntary fixed milk price scheme closely, take the necessary advice and make an informed choice based on all the facts,” he said.