Lakeland Dairies CEO Forecasts Higher Milk Prices in 2025 Amid Market Volatility

Colin Kelly, the Chief Executive Officer of Lakeland Dairies, has forecasted that the average milk price in 2025 will surpass that of 2024. This optimistic outlook comes despite his prediction of increased market volatility in the upcoming year.

Reflecting on the year 2024, Kelly described it as a "year of two halves," noting significant progress in the short term, specifically for Lakeland Dairies. The company saw success manifested in their loyalty payments of 0.8c/L and 0.65p/L, indicating a profitable year compared to the challenging 2023. Farmers, according to Kelly, experienced a tough start to 2024 due to adverse weather conditions in spring and a demanding summer. However, they ultimately benefited from strong back-end prices, leading to a generally favorable year.

Looking ahead, Kelly emphasized the critical role of weather in influencing both margins and farmer sentiment in 2025. While he anticipates good pricing, the weather's impact could shape the year's overall outcome.

Kelly also addressed broader challenges that the dairy sector faces, such as issues related to nitrates derogation and succession within farming communities. He highlighted initiatives like the Land Mobility Scheme, which has successfully facilitated the transfer of 10,000 acres to new farmers, ensuring the land remains in dairy production.

As the industry braces for potential regulatory changes following promises made during election campaigns, Kelly asserted that these developments could significantly reshape the future of Irish dairy farming.