Lakelands under fire on 'derisory' milk rise
Farm organisations have slammed the decision by Lakeland Dairies to increase its October milk price by just 1c/l to 27c/l (VAT inclusive).
The ICMSA labelled the increase "derisory" and said there was "frustration and astonishment" among Lakelands suppliers that the co-op had not reflected the significant improvement in global markets for dairy commodities.
The IFA expressed disappointment with the Lakelands decision and pointed out that the Ornua index had moved to 95.9, which was equivalent to a farm-gate price of 28c/l.
A surge in global dairy markets over the last fortnight saw the New Zealand GDT jump by 11.4pc, with the sale price of whole milk powder (WMP) up 19.8pc, butter up 4pc and skim milk powder (SMP) up 6.5pc.
It was widely anticipated that dairy processors would reflect the improved sentiment on world markets by increasing October milk prices by at least 2c/l.
However, industry sources pointed out that many processors were tied into forward contracts for commodities.
They also maintained that the continuing uncertainty following the Brexit vote and US presidential election had unsettled markets.