Lakeland sets September milk price
Lakeland will pay its suppliers in the Republic of Ireland a price a price 34.6c/litre (ex VAT) this is up 1c/l from August milk. The 1c/l increase is being classed as a butter bonus.
The co-op said the price “reflects the higher butter price that has underpinned and driven all the milk price increases for 2017”.
Lakeland is, however, cautious on the future of the market.
“Unfortunately butter prices have passed peak and are now much weaker as we face into 2019 and powder prices are returning less than intervention,” the co-op said.
Lakeland joined Glanbia in setting a price on Thursday.
Ornua set the Purchase Price Index (PPI) for September earlier this week. The PPIis 114.3, which is up from 111.0 in August.
A PPI of 114.3 equates to a milk price of 32.9c/l (excluding VAT)
Ornua says the PPI “reflects higher butter and cheddar returns, offset by lower whey prices and stable SMP returns”.