Lakeland Dairies Reduces Milk Prices Amid Surplus Supply Challenges

Lakeland Dairies has announced a further reduction in milk prices for December, setting the price at 33.25c/l in the Republic of Ireland. This price includes a 0.5c/l Sustainability Incentive Payment and represents a 3c/l decrease from November. This adjustment is in line with recent trends, following two previous 4c/l cuts and a 3c/l cut over the last three months. Farmers had previously received 47.25c/l in August.

In Northern Ireland, the price for milk supplied in December is set at 26.3p/l, also inclusive of the Sustainability Incentive Payment, marking a reduction of 2.5p/l from the previous month. The cooperative has attributed these price changes to the unprecedented volumes of surplus milk, which have increased inventories and impacted dairy commodity prices globally.

A spokesperson for Lakeland Dairies mentioned, "Unprecedented volumes of surplus milk continue to weigh on global markets following the surge in supply in recent months." This situation has been exacerbated by global economic uncertainties and cost-of-living pressures, leading to reduced consumer demand compared to the supply.

To support farmers during these challenging market conditions, Lakeland Dairies will provide an out-of-season payment on top of the base price to qualifying farmers. Additionally, a loyalty payment of 0.3c/l for all 2025 milk supplies will be made in the Republic of Ireland, with a 0.25p/l loyalty payment in Northern Ireland.

These measures are part of the cooperative's efforts to help farmers manage the ongoing challenges in the dairy market.