The Co Cavan-based co-op has announced that it is leaving its base price unchanged for suppliers in the Republic of Ireland at 30.15c/l, excluding VAT.

Lakeland "will also provide a further payment to support milk producers following from the recent bad weather and fodder crisis", a spokesperson said, however this has been reduced from 2.5c/l in March to 1.5c/l in April.

The total price paid to farmers is therefore dropping by 1c/l, to 31.57c/l for April supplies (excluding VAT).

Meanwhile, the co-op is paying 26.5p/l to its suppliers in Northern Ireland. This includes a support payment of 1.5p/l.

"Global market conditions remain challenging. While there has been some improvement in skim markets, this is from a record low base and butter returns are carrying milk prices," the spokesperson said.

Positive reaction

IFA dairy chair Tom Phelan welcomed Lakeland's decision: "Farmers will be legitimately expecting their co-ops to follow the Lakeland example in recognising those facts, and to sustain them and their milk supplies, that they will continue to support milk prices."

Phelan pointed out that grass growth and ground conditions only improved this month for many farmers. He added that Ornua's latest PPI index and improving returns for dairy commodities since late April justify a milk price of over 30c/l, excluding VAT.

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