Farm Ireland

Sunday 22 January 2017

Lakeland only dairy to lift price

Published 18/01/2011 | 05:00

Lakeland Dairies has moved to raise its milk price for last month, but all the other major processors have held returns at November levels.

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Lakelands will pay 30.5c/l including VAT (29c/l excluding VAT) for December supplies, an increase of 0.5c/l.

However, Glanbia, Kerry and Dairygold all said that they are holding at 30c/l including VAT.

Centenary and Town of Monaghan are also staying on 30c/l including VAT, while Arrabawn is staying at 30.5c/l including VAT.

The Lakeland Dairies move has been welcomed by both the ICMSA and the IFA.

The IFA's Kevin Kiersey said Lakeland Dairies had taken a first step to pass back improved market returns to farmers.

He called on all co-ops, in the context of rapidly rising on-farm input costs, to examine the scope for an end-of-year top-up on last year's milk and to start passing benefits of the significant market improvements of recent weeks back to farmers.

The ICMSA's Pat McCormack called on co-ops which had yet to pay an end-of-year bonus to do so as soon as possible.

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There was surprise across the industry that the Irish Dairy Board (IDB) failed to raise returns to co-ops for last month's supplies -- returns for butter were cut by €150/t and skim milk powder (SMP) by €100/t in November.

"We calculate that gross spot returns for Dutch food-grade SMP and butter this week, before processing costs, exceed 37c/l -- an improvement of over 3c/l since late November," Mr Kiersey said. "With fast rising input prices, we estimate that, to maintain margins, dairy farmers will need an average 2011 price at least 10pc (3c/l) higher than the 2010 average."

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