Kinisla and Lakeland Dairies Announce May Milk Prices Amid Market Changes

Kinisla, the dairy processor formerly known as Kerry Dairy Ireland, has announced its milk price for May supplies. The company will pay 38c/L, VAT inclusive, which includes quality and sustainability bonuses. At EU standard constituents of 3.4% protein and 4.2% butterfat, this translates to 41.63c/L, VAT inclusive. Based on Kinisla's average milk solids for May, the price is 40.93c/L, again including VAT and bonuses.

The company stated that global milk production continues to increase significantly. As a result, markets are assessing the demand outlook, leading to price stabilization and slight easing.

Meanwhile, Lakeland Dairies was the first processor to announce its May milk prices. The company decided to increase the price by 0.5c/L. In the Republic of Ireland, a base price of 37.5c/L will be paid, inclusive of a 0.5c/L Sustainability Incentive Payment, at constituents of 3.6% butterfat and 3.3% protein. In Northern Ireland, the base price is set at 30.1p/L, also including the Sustainability Incentive Payment, reflecting an increase of 0.5p/L.

Despite the increase in pricing, Lakeland indicated this move is more supportive than market-driven. The company highlighted that milk supply remains strong, affecting market dynamics, while demand has weakened compared to the previous month. Furthermore, prices for powder and butter have slightly decreased, with geopolitical factors continuing to impact conditions.

Lakeland Dairies emphasized its commitment to monitoring the market and supporting farmers with competitive pricing aligned with market conditions.