Lakeland Dairies has cut its base milk price by 2.5c/l for March but will pay farmers a support payment of the same amount for all March supplies.
The March base price will be 30.42c/l excluding VAT (32.06c/l including VAT).
The price farmers receive for March milk will be 32.78c/l, excluding VAT.
Lakeland Dairies said it would balance a reduction in the March milk price with a payment to support milk producers during the current very poor milk production conditions caused by bad weather and the fodder crisis.
“Since late 2017, global market conditions have become very difficult with a significant drop in the returns available across various product categories and most notably skim milk powders,” a spokesman for the co-op said.
“Taking all of the various factors into account, Lakeland Dairies has reduced is base milk price by 2.5c/l for March but has offset this reduction through the payment of 2.5c/l support for all March supplies.
“This maintains the effective milk price payout for March at 34.56c/lincluding VAT and lactose bonus."
“Lakeland Dairies is continuing to support farmers to the maximum possible in line with market conditions.
“The co-operative is also continuing to provide fodder at cost to milk producers along with ongoing nutritional advice and assistance in this difficult period.”
Co-ops warned not to 'kick farmers in the teeth' on milk price
Fodder crisis drives butter price spike in Europe