Lakeland Dairies increased the milk price for June in both the Republic of Ireland and Northern Ireland, reflecting ongoing support for farmers amidst fluctuating market conditions. The co-op’s commitment to fair pricing and sustainability was evident as it navigated changes in market dynamics and global dairy trade trends.
Lakeland Dairies, a prominent dairy co-operative renowned for its high-quality dairy products and commitment to sustainable farming, announced an increase in the base price for milk supplied in June. This adjustment reflected the co-op’s efforts to support its farmers amidst evolving market conditions. With a focus on sustainability and fair pricing, Lakeland Dairies continued to navigate the challenges of the dairy industry while prioritizing the welfare of its suppliers.
New Milk Pricing
- Republic of Ireland
For June, Lakeland Dairies paid a base price of 43.5c/L for milk, which included a 0.5c/L Sustainability Incentive Payment. This represented an increase from the 42.9c/L paid in May. The base price was determined based on 3.6% butterfat and 3.3% protein content. The increase aimed to provide additional support to farmers in response to the prevailing market conditions and rising production costs. - Northern Ireland
In Northern Ireland, the base price for June was set at 35.8p/L, also inclusive of the 0.5p/L Sustainability Incentive Payment. This adjustment was an increase from the 34.5p/L paid for milk supplied in May. The revised base price underscored Lakeland Dairies’ commitment to maintaining fair compensation for its suppliers despite ongoing market challenges.
Market Conditions
Lakeland Dairies observed that the market remained “largely similar” to the previous month, with no significant changes in the supply-demand balance. While weather and grazing conditions showed some improvement, they continued to present challenges for farmers. The co-op remained dedicated to closely monitoring market trends and providing support to its farmers to mitigate these challenges.
Ornua Monthly Purchase Price Index (PPI)
The Ornua Monthly Purchase Price Index (PPI) for June rose to 140.8, up from 135.6 in May. This indicated an indicative return of 41.5c/L, inclusive of VAT, for milk with 3.6% fat and 3.3% protein. The 1.9c/L increase reflected improved market returns over the past month. Additionally, the Ornua Value Payment for June amounted to €14 million, representing 5.8% of gross purchases, which highlighted the ongoing positive adjustments in the dairy market.
Global Dairy Trade (GDT) Update
In contrast, the Global Dairy Trade (GDT) index experienced a sharp decline, falling by 6.9% in the most recent trading event. The index dropped from 1,157 to 1,077, marking the lowest figure since late March. This significant downturn underscored the volatility and challenges in the global dairy market, which continued to impact pricing trends.
Lakeland Dairies’ decision to increase milk prices for June reflected a strategic approach to support its farmers amid fluctuating market conditions. While the Ornua PPI indicated positive market returns, the substantial decline in the GDT index highlighted the ongoing challenges in the global dairy sector. Lakeland Dairies remained committed to supporting its suppliers through fair pricing and sustainability initiatives, ensuring resilience and adaptability in a dynamic market landscape.
