Lakeland Dairies has announced an unchanged milk price for suppliers in August.

Suppliers in the Republic of Ireland will receive 29.4c/l excluding VAT for milk supplied last month. Suppliers in Northern Ireland will receive a base price of 25.25p/l, also unchanged.

Commenting on the price, Lakeland said: “There is a cautious stability in the market at present. However, there are a number of issues on the horizon that are of concern in the dairy markets.

“The dynamic between supply and demand is a serious concern, with production in the main dairy regions growing supply year on year. This increase in production is being met by weaker demand from buyers.”

Private storage

“On the back of this supply-demand dynamic, volumes of dairy products currently in private storage will be coming back on to the market in the coming months. This has the potential to flood an already depressed market," the spokesperson continued.

“Elsewhere, the serious uncertainty around what shape, if any, a free trade agreement between the EU and the UK post-Brexit is a major concern to all exporting companies. Clarity is required in this space as the lack of progress between the EU and the UK is worrying.

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

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