Lakeland Dairies announces its milk price for May supplies

Lakeland Dairies has become the first milk processor to reveal its milk price for May supplies.

The processor announced its milk price following a meeting of its board earlier today, Thursday, June 11.

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 food-service network shut down across Europe, milk destined for food-service 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 food-service sector, any reopening of the food-service sector has been limited.

A floor appears to have 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.”