Lakeland Dairies has increased its June milk price for suppliers on the island of Ireland.
Farmers in the Republic of Ireland will receive a rise of 1c/l for June supplies, bringing the base price to 28.46c/l, excluding VAT.
A rise of 1.25p/l will be applied for farmers in Northern Ireland, bringing the base price to 24.25p/l.
Following the collapse in global markets, particularly in the food service sector, as a result of the outbreak of the COVID-19 pandemic, an element of stability has returned in recent weeks, a spokesperson for Lakeland Dairies said.
"Lakeland Dairies is in a position to pass on improved returns directly to our 3,200 farm families.
“While sentiment has improved, there continues to be significant market uncertainty around issues such as a second wave of COVID-19, what the shape of a trade deal between the EU and the UK will look like, increasing milk supply in Europe and currency fluctuations. Any one of these issues has the potential to cause disruption to the dairy markets.
“Lakeland Dairies will continue to monitor the market closely in the coming days and weeks.”
This week, the Ornua purchase price index (PPI) increased for June.
It increased to 101.7 percentage points, equivalent to a milk price of 28.55c/l excluding VAT.
This is a marginal increase on the May PPI and is attributable to stable returns across the Ornua product mix.
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