Lakeland Dairies was first out of the traps announcing its milk price for September. However, the news does not bode well for last month’s supplies, with a significant reduction in price.
All eyes now turn to other co-ops, with further prices expected to be set imminently.
The board of Lakeland Dairies announced last week 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.
In Northern Ireland, the price was reduced by 2.5p/l on the price paid for August.
Lakeland also announced it will introduce a feed rebate of €20/t, which will be applied to all Lakeland Dairies retail dairy feed purchases made by milk suppliers between November and February. Kerry Dairy Ireland also announced a price cut as this paper went to press.
Focus on value-added – Heydon
In response to the price reduction for September and the move by retailers to cut the cost of milk on shelves, Minister for Agriculture Martin Heydon said dairy farmers need to focus on the “value-added piece” in order to protect themselves against income volatility.
“It’s not surprising, it’s a big challenge for dairy farmers to see such a change so quickly, but we know our dairy sector is linked to world market prices. We’ve seen in recent months that the decline has been sharp in terms of world butter prices.
“It is the nature of the sector that we are very much impacted by those prices but we’ve a very strong resilient dairy sector,” he said.
The Minister added that innovation and incorporating the value-added element are key in such a volatile market.
Lakeland Dairies was first out of the traps announcing its milk price for September. However, the news does not bode well for last month’s supplies, with a significant reduction in price.
All eyes now turn to other co-ops, with further prices expected to be set imminently.
The board of Lakeland Dairies announced last week 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.
In Northern Ireland, the price was reduced by 2.5p/l on the price paid for August.
Lakeland also announced it will introduce a feed rebate of €20/t, which will be applied to all Lakeland Dairies retail dairy feed purchases made by milk suppliers between November and February. Kerry Dairy Ireland also announced a price cut as this paper went to press.
Focus on value-added – Heydon
In response to the price reduction for September and the move by retailers to cut the cost of milk on shelves, Minister for Agriculture Martin Heydon said dairy farmers need to focus on the “value-added piece” in order to protect themselves against income volatility.
“It’s not surprising, it’s a big challenge for dairy farmers to see such a change so quickly, but we know our dairy sector is linked to world market prices. We’ve seen in recent months that the decline has been sharp in terms of world butter prices.
“It is the nature of the sector that we are very much impacted by those prices but we’ve a very strong resilient dairy sector,” he said.
The Minister added that innovation and incorporating the value-added element are key in such a volatile market.
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