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Despite concerns about trade deals and future trading relationships, Lakeland Dairies remains on the hunt for new milk.
In recent weeks, the co-op placed adverts in national and regional press looking mainly for new entrants to dairying. As previously reported by the Irish Farmers Journal, some 60 new entrants will supply milk to Lakeland this year, a third of whom are from NI.
Lakeland, which has eight production sites north and south of the border, processes 1.85bn litres of milk annually – 1.1bn litres of that coming from farms in NI. Approximately half of that goes south for processing in its ROI plants.
Speaking to the Irish Farmers Journal, Lakeland Dairies CEO Michael Hanley said the co-op is optimistic about the sector.
“We have had an excellent relationship with farmers in NI since 1995. In that time, we have grown sustainability and we have been strategically investing at all our NI sites which will help drive more product through those plants and deliver greater efficiencies”.
He added that despite the uncertainties around Brexit and a future trading arrangement, he sees positives for farmers.
“The long-term fundamentals of dairying remain good. We are keen to speak to any farmer who has interest in dairying and we know we can help them carve out a successful career,” he said.
Dairy markets weakening as Coronavirus spreads
Coronavirus continues to undermine buying demand in dairy markets, with this week’s GDT falling 1.2%, the third successive event with a negative outcome.
Butter price increased by 1%. However, milk powder and cheese all recorded a drop in value. Cheddar fell by 4.7%, with skim and whole milk powder down 3.2% and 0.5% respectively.
European markets have also been affected, with butter prices at the weekly Dutch Dairy Board (DDB) recording a drop of €50/t to €3,450/t.
Skim fell €40 to €2,460 while whole milk powder held at €3,000/t.
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