Lakeland Dairies has announced a 1p/l price cut to its November milk price, bringing it to a base of 26.5p/l.
The Cavan-based processor is the first milk buyer to declare a price for November. At 26.5p/l, it takes Lakeland to the same base price offered for October milk by prospective merger partner LacPatrick. It is due to declare a November price next Tuesday, and is expected to sit around the 26p/l to 26.5p/l mark.
On top of the outlined base price, Lakeland will pay its traditional winter bonus of 3p/l on all milk delivered during November and December. This means the co-op’s suppliers are effectively on a base of 29.5p/l. From January to November, this brings Lakeland to an average base price of 27.55p/l, putting it marginally ahead of the 27.41p/l base paid over the same period in 2017.
Meanwhile, the latest DAERA statistics show that the average farmgate milk price paid to NI dairy farmers in October was 29.92p/l.
The October price is 0.61p/l higher than September, but significantly lower than the 32.87p/l paid during the corresponding month last year.
The annual price difference works out at £2,124 for a 1m-litre producer supplying 72,000l during October.
While milk buyers continue to point to a downward correction in prices in the months ahead, there has been a second successive increase in the Ulster Farmers’ Union (UFU) milk price indicator, which now sits at 27.47p/l.
The UFU points to improving market prices for skim and whole milk powder on the weekly Dutch Dairy Board (DDB) auctions and a positive outcome at last week’s GDT auction.
Exchange rates have also moved in favour of UK exporters. At this week’s DDB auction, skim prices were up €40/t to €1,700/t, their highest point of the year. Whole milk powder also increased by €30/t to €2,700/t. However, butter prices fell by €20/t to €4,140/t.
Lakeland drops milk price
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