Lakeland Dairies has announced a milk price for May.
It announced today that in the Republic of Ireland, a base price of 29c/L (including VAT) will be paid for milk supplied in May. The base price has been held from April.
In Northern Ireland, a base price of 23p/L will be paid for May milk. Again, the price has been held from April.
Commenting on the price, Lakeland Dairies said after a near total wipe-out of the global dairy markets following the spread of the COVID-19 global pandemic, where prices fell to 2016 levels, there slowly appears to be stability returning to the market.
“As the entire foodservice network shut down across Europe, milk destined for foodservice flooded into the market for powders and butters which resulted in an oversupply and a subsequent collapse in prices. With Lakeland Dairies significantly exposed to the foodservice sector, any reopening of the foodservice sector has been limited.
“A floor appears to have to come into the market in recent weeks. However, prices remain well back on the start of the year prior to the spread of COVID-19.
“Lakeland Dairies will continue to monitor the market closely in the coming weeks and months ahead.”