Lakeland Dairies has announced an increase in the base price by 1c/l for September milk supplies.
Suppliers in the Republic of Ireland will receive 30.36c/l excluding VAT for milk supplied last month. Suppliers in Northern Ireland will receive a base price of 26.25p/l, an increase of 1p/l on the August price.
Commenting on the price, Lakeland Dairies said: “There is some stability in the global dairy markets, but there are growing worries around the supply and demand dynamic.
"After a subdued first half of the year, supply in many of the main production areas appears to be ramping up through the second half of 2020.
“With demand still subdued, a major surge in milk supply would be concerning for markets ahead of the critical Christmas buying season.
"There is also a considerable volume of product in private storage, which will be back on the market in the coming weeks. Demand will need to ramp up to deal with this extra volume.”
Hopeful for agreement
“The recent improvement in food service sales is welcome, but as all economies deal with a resurgence of COVID-19, the recovery for the sector is stop-start with fluctuations in demand,” the spokesperson continued.
“The entire dairy industry remains hopeful that a free trade agreement between the EU and the UK can be agreed, as ending the transition period without a deal would be extremely worrying for exporting companies.
“Lakeland Dairies will continue to monitor the market closely in the coming weeks.”