Lakeland Dairies has announced it will significantly reduce its September milk price.
The board of Lakeland Dairies announced on Friday it will cut its price for milk supplied last month by 2.85c/l excluding VAT.
It will pay a base price of 41.63c/l excluding VAT at 3.3% protein and 3.6% butterfat.
A 0.48c/l excluding VAT sustainability payment will be made to qualifying suppliers in addition to this.
In Northern Ireland, a price of 35.8p/l will be paid for milk supplied in September, which is inclusive of the sustainability incentive payment. This is a reduction of 2.5p/l on the price paid in August.
Market pressure
Announcing the price cut Lakeland Dairies said: “The market continues to experience pressure due to sustained strong global supply, particularly from major dairy-exporting regions.
“This is driving a decline in commodity prices for butter and all milk products and is contributing to a significant downward momentum on farm gate price.
“Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers with the best milk price possible in line with market conditions.”
Feed support
Lakeland also announced it will introduce a feed support initiative for the winter.
Under this scheme, a rebate of €20/t will be applied to all Lakeland Dairies retail dairy feed purchases made by milk suppliers between November and February.
“The initiative is designed to support liquid and winter milk suppliers during the early and mid-lactation period. It will also help spring-calving herds manage the winter dry period effectively,” the co-op said.
Terms and conditions will apply and farmers seeking further information are told to contact their local Lakeland Dairies agribusiness representative.
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