Lakeland Dairies increases its September milk price
Lakeland Dairies has increased its payout for September milk.
Compared to August It will pay a 1c/L butter bonus for all milk supplied including all fixed price contracts. This takes the Lakeland payment to a gross 36.5c/L including VAT.
This reflects the higher butter price that has underpinned and driven all the milk price increases for 2017.
However, Lakeland also said that butter prices have passed peak and are now much weaker as we face into 2018, and powder prices are returning less than intervention, the co-operative said.
Yesterday Glanbia announced that it will pay suppliers 35c/L (including VAT) for September milk. It announced today that the 35c/L including VAT is for September manufacturing milk supplies at 3.6pc butterfat and 3.3pc protein. This price is unchanged from the August price.
IFA Dairy Chairman Sean O’Leary said the decision by the Glanbia board to hold their September milk price at the August level is disappointing, and definitely falls short of EU market returns, as reported by the EU Milk Market Observatory.
He called for other co-op boards, rather than blindly follow Glanbia’s lead, to pay farmers at least 1c/l more for September supplies.