Lakeland Dairies has increased its milk price for January milk by 0.5c/l.

Farmers in the Republic of Ireland will receive 30.18c/l excluding VAT, but including a lactose bonus. Qualifying farmers will also receive an out-of-season payment.

In Northern Ireland, the base price has been increased by 0.25p/l to 25.25p/l.

Markets

Commenting on the price, Lakeland said: “While European and US milk production has returned to growth in recent months, the global dairy market fundamentals are reasonable, with supply and demand pretty well balanced.

"However, there is a growing concern in the market on the back of the coronavirus. Over the past month, sentiment in China has become weaker as authorities there move to get a handle on the virus. This has resulted in a slowing of consumer sentiment and distribution channels.

“Lakeland Dairies will continue to monitor the market situation closely over the coming weeks.”

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Lakeland increases December milk price