Lakeland cuts its milk price by 0.5c/L
The Board of Lakeland Dairies met today and set a price for July milk, cutting it by 0.5c/L on its June price.
In the Republic of Ireland, a price of 30.78c/L (including VAT) has been agreed for milk supplied in July. The price has reduced by 0.5c/L on last month’s price.
In Northern Ireland, a price of 25.25p/L will be paid for July supplies.
Commenting on the price, the Co-op said the continued uncertainty in the global dairy markets has manifested itself more sharply in the last month with butter prices, in particular, coming under severe pressure as demand slows.
“Against the backdrop of weak demand for butter as well as Brexit uncertainty, geo-political trade tensions and significant euro-sterling fluctuations, Lakeland Dairies will continue to closely monitor the market in the weeks ahead.”
It comes as Glanbia cut its base milk price yesterday for July supples to 29c/L.
Glanbia's move to cut its milk price to under 30c/L has been described as 'unwarranted' and a 'knee-jerk' decision.
Glanbia announced it would pay a base milk price for July of 29c/L including VAT for manufacturing milk at 3.6pc fat and 3.3pc protein. This is a reduction of 1c/L from the June base price.
The board of Glanbia Co-op has decided to continue to make a support payment to members of 0.5c/L including VAT for July milk supplies.
Glanbia chairman Martin Keane said the milk price for July has been adjusted due to weaker dairy market returns, particularly for butter.
The chairperson of ICMSA's dairy committee, Ger Quain, said that the Glanbia decision was unwarranted and represented "the usual default response of our co-ops and processors: when in doubt; cut farmer milk price".
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