Lakeland Dairies has increased its milk price by 1.5p/l, putting suppliers on a starting point of 47.5p/l for August.

However, the 1.5p/l increase is a new input support payment, which means it is payable on both conventional supply and milk committed under fixed-price schemes.

Back in May, Lakeland announced a 7p/l price increase for milk committed under fixed price contracts, which applies until December 2022. Fixed price contracts during August will now be supplemented by 8.5p/l.

Announcing the August price, NI’s largest processor said it recognised the inflationary pressure on suppliers. The co-op will pay an average farmgate price of 48.98p/l for August.

MPI

Meanwhile, following positive market trends at last week’s GDT and Dutch Dairy Board auctions, the UFU milk price indicator has increased to 47.11p/l. The published MPI does not account for processing margins and transport. Allowing for a 5p/l deduction to cover both, it suggests milk processors are currently paying a base price 4p to 5p/l ahead of the MPI.

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Lakeland Dairies paying 47.5p/l for August

Lakeland Dairies was first to set a milk price for August, raising it by 1.5p/l.