Lakeland Dairies Reduces Milk Price Due to Global Market Pressures

Lakeland Dairies has set the milk price for October at 40.25 cents per litre in the Republic of Ireland, which includes a 0.5 cents per litre sustainability incentive. This represents a reduction of 4 cents per litre compared to the September rate. In Northern Ireland, the price set for October is 32.3 pence per litre, down by 3.5 pence from the previous month.

The cooperative noted ongoing market pressures caused by an increase in global milk supplies, which are outpacing demand. This discrepancy is affecting returns on dairy products such as butter, cheese, and powder, leading to further pressure on farmgate prices. Lakeland Dairies stated, "Significant market pressure persists as global milk supplies continue to grow from an already strong base."

The statement from Lakeland Dairies emphasizes that they will continue to monitor market trends and aim to support farmers by providing the best possible milk price aligned with current conditions. The cooperative acknowledged warnings from dairy analysts, including Susie Stannard from the Agricultural and Horticultural Development Board, who indicated that milk supplies are exceeding global demand, leading to rising inventories of dairy products.

Global Dairy Trade indices have reflected this situation, with recent figures illustrating a decline for the sixth consecutive time, highlighting the challenges faced by the dairy industry in aligning supply with demand.