The board of Lakeland Dairies met on Tuesday this week and has announced a 0.5c/l cut in price for July milk. The price is 29.2c/l, excluding VAT, for standard constituents of milk.
In Northern Ireland, a price of 25.25p/l will be paid for July supplies.
Commenting on the price, a co-op statement rewad: “The continued uncertainty in the global dairy markets has manifested itself more sharply in the last month, with butter prices in particular coming under severe pressure as demand slows.
“Against the backdrop of weak demand for butter as well as Brexit uncertainty, geo-political trade tensions and significant euro-sterling fluctuations, Lakeland Dairies will continue to closely monitor the market in the weeks ahead.”
Lakeland is the second processor to set a price this month. On Monday, Glanbia announced a 1c/l cut to its price.
Member milk suppliers will receive 27.9c/l, excluding VAT, for milk supplied at 3.6% butterfat and 3.3% protein. A support bonus of 0.5c/l will continue to be paid for July milk supplies.
The Ornua purchase price index (PPI) for July 2019 fell to 104.0.
This is a farmgate equivalent price of 29.31c/l excluding VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/l.
A spokesperson for Ornua said that the "adjustment for July reflects sharply weaker butter prices, partially offset by improved powder prices and flat returns for cheese".
Glanbia drops July milk price
Ornua PPI slips below 31c/l for July