Lakeland Dairies confirmed higher September milk prices

Lakeland Dairies said on Tuesday, October 13th, that its board had approved the September milk prices. In the Republic of Ireland, suppliers will receive a base rate of 39.7 cents per litre, calculated on milk containing 3.6% butterfat and 3.3% protein.

The Irish figure includes a Sustainability Incentive Payment of 0.5 cents per litre. It is 0.6 cents above the 39.1 cents per litre paid for August milk.

In Northern Ireland, Lakeland Dairies will pay 31.9 pence per litre for September supplies. That amount also includes the sustainability payment and represents a rise of 0.5 pence per litre compared with the August rate.

The co-operative said global milk flows were still above the level recorded a year earlier, although the pace of expansion was slowing. It added that firm demand had accompanied a stronger market over recent months.

Lakeland Dairies identified oil prices, energy costs, consumer sentiment, interest rates and overall inflation as the main macroeconomic variables affecting demand in the short to medium term. The processor said it would continue to track market conditions and seek to support farmers with the best milk price possible in line with those conditions.

The announcement followed a separate decision by Ornua the previous week. Ornua’s Purchase Price Index for September rose to 135.8 from 130.4 in August. The change implied a return of 38.2 cents per litre, including 4.5% value-added tax, for milk with 3.6% fat and 3.3% protein. That was above the 36.2 cents per litre indicated for August and was stated to be net of Ornua’s marketing costs.