Lakeland Dairies announced milk price for September milk supplies

Lakeland Dairies milk powder plant Bailieboro.
Lakeland Dairies milk powder plant Bailieboro.

FarmIreland Team

Lakeland Dairies has held its base milk price at 32.78 cents per litre including VAT for September milk supplies.

A lactose bonus of 0.28 cpl will also apply for September milk, bringing the effective milk price to 33.06 cents per litre including VAT.

Lakeland Dairies noted that market demand has weakened for butter and milk powder.

Milk supplies are generally strong at present and are up by over 10pc in the current month compared to the same time a year ago.

Balanced global milk supplies and relatively stable prices are forecast for the back end of 2018 and across most of 2019, according to the latest Rabobank quarterly review.

However, uncertainty surrounding Brexit, continuing trade tensions between the US and China, and increased milk output in New Zealand are all identified as potential threats to market stability.

Global dairy markets have been helped by stronger Chinese buying in 2018. Imports were up 11pc from January to July compared to 2017, and are forecast to increase 16pc in the second half of the year.

A slowdown in milk supply growth across all the main production regions - apart from New Zealand over the last few months - has also been a feature of 2018, with output increasing by just 1pc in Q2 and into Q3 compared to 2017.

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This level of supply growth will be absorbed by increasing global consumption, Rabobank states.

Drought in Europe, and more expensive feed in the US and Argentina, hit milk production in all three regions, Rabobank points out.

Online Editors