Lakeland Dairies hold milk price for June milk supplies
Lakeland Dairies has held the base milk price at 31.78 cents per litre including VAT for June milk supplies.
The June milk price of 31.78 cpl is the same base price that was paid in May.
In a statement the company said the move was consistent with Lakeland Dairies’ commitment to pay our suppliers the highest possible milk price in line with market conditions which remain challenging.
It said there has been a softening in skim markets, which have risen only gradually from a record low, and while butter returns which are underpinning current prices, they have softened in the past month.
Lakeland's decision to hold milk prices comes as IFA National Dairy Committee Chairman Tom Phelan today said the Ornua PPI for June increased by 3.6 points to 109 points close to the 110 points of June 2017, when milk prices were higher.
Tom Phelan said the PPI reflected the fact that market trends during June had improved to meet at least the full pay-out for May (base price plus any weather/fodder support).
He said co-ops, who are meeting either today or in coming days to decide on milk prices, owe it to farmers to roll the support into the base price, and add at least an extra 1c/l to the June base.
“Not only do markets justify this increase comfortably, farmers need it very badly after an exceptionally challenging year for fodder and for cash flow,” Tom Phelan concluded.