Farm Ireland

Friday 22 March 2019

Lakeland Dairies cuts milk price by 1c/L

Claire Fox

Claire Fox

Lakelands Dairies is the latest milk processor to reduce its milk price.

The Cavan-based processor has reduced its base milk price for February milk by 1 cent per litre.

This brings the effective milk price for February to 34.56 cent per litre including VAT and lactose bonus.

The reduction in the base milk price reflects extremely challenging market conditions including lower returns for powders and butter in recent months. 

Lakeland Dairies are very much aware of the difficult conditions faced by milk producers during the past month and the supported February milk price is designed to acknowledge these difficulties as best as possible in line with overall difficult market conditions.

This follows recent announcements by Glanbia Ireland and Kerry Group that they are reducing their milk price for February.

Glanbia Ireland was first out of the blocks to cut the milk price for February yesterday, amid warnings of an oversupply in the marketplace.

The Kilkenny-based processor moved to cut its price by 3c/l from January levels. It will pay milk suppliers 32c/l including VAT for February at 3.6pc butterfat and 3.3pc protein.

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This morning a spokesperson from Kerry Group said that the processor is to cut its milk price by 2c/l from January levels. It will pay suppliers 34c/l including VAT for February.

The Chairperson of ICMSA’s Dairy Committee, Gerald Quain, said that he was very disappointed that Glanbia had decided to cut it February milk price by 3c/L and stated that their decision to cut by such a significant amount stood in sharp contrast to their ‘low and slow’ policy of price rises when the dairy markets were strengthening and surging.

Mr Quain also said that the 1c/L adverse weather bonus should be part of the milk price and not classed as a bonus,  he said that the February payment was the first decent milk cheque of the year for most farmers and the Glanbia decision represented a significant blow to farmer confidence as they headed in Q2 and peak production months.

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