The board of LacPatrick Dairies has met today (Wednesday February 21) and set a price for January milk, which will remain unchanged from December.
Suppliers in the Republic of Ireland will be paid a base price of 35.75c/L including VAT. Meanwhile, in Northern Ireland, LacPatrick will pay suppliers a base price of 29.45p/L.
Commenting on the milk price, LacPatrick Dairies chairman Andrew McConkey said: “We acknowledge that there has been an improved sentiment in the global dairy markets in recent weeks, albeit from a low base.
“However, we still have a significant gap between the current price being paid to our suppliers and the market returns.
“Based on the situation as it stands, it would appear inevitable that the gap between the market returns and the price being paid to suppliers will have to narrow, McConkey warned.
However, we will continue to closely monitor the market situation so that we return the highest possible price to our farmers.
The news comes as the latest Global Dairy Trade (GDT) auction resulted in a marginal fall in the overall prices achieved for dairy products. The overall GDT price index declined by 0.5% on the previous auction held on February 6.
Some 20,256MT of dairy products were sold at the event and price increases were noted for whole milk powder (WMP) and butter. However, skimmed milk powder returns declined by 3%.
The previous three auction events held prior to today’s sale had all posted positive returns.