Farm Ireland

Thursday 22 March 2018

Lakeland Dairies announces October milk price increase

Margaret Donnelly

Margaret Donnelly

Lakeland Dairies has increased its October milk price, by 1c/L - a figure which leaves it short of the 30c/L farming organisations are looking for

it is the first major processor to set an October milk price and it comes after Ornua increased its Purchase Price Index to the equivalent of 27c/L.

Lakeland Dairies has increased milk price by 1c/L to 27c/L (VAT inclusive) for October milk.

While it is an increase - and one that will be welcomed by farmers - it falls short of the 30c/L that farm organisations have called on processors to pay dairy farmers.

ICMSA Dairy chairman Gerard Quain said that "based on market returns, there is absolutely no reason why the milk price could not be set at 30c/L for October".

Following a meeting of the IFA's dairy committee recently, Sean O'Leary said that the IFA "will lobby all board members for a 3c/L October milk price increase" over the coming days ahead of board meetings to set the price which are scheduled to be held by mid month.

Earlier this week, Ornua, formerly the Irish Dairy Board, increased its Purchase Price Index (PPI) for October to 95.9.

That figure is equivalent to a farmgate price of 27.9c/L VAT inclusive and assumed costs of 6.5c/L.

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