Lakeland Dairies announces April milk price

Lakeland Dairies is the first processor out of the traps this month to announce its milk price, revealing that it has maintained its base price for April milk.

It will also provide a further payment to support milk producers following on from the recent bad weather and fodder crisis.

Lakeland has held the base milk price at 31.78c/L including VAT plus a 1.5c/L support for all April milk supplies; this equates to 33.28c/L including VAT.

Global market conditions remain challenging. While there has been some improvement in skim markets, this is from a record low base and butter returns are carrying milk prices, according to the processor.

At all times, Lakeland Dairies is committed to paying the maximum possible milk price in line with market conditions, the co-op has said.

This follows on from a base milk price reduction of 2.5c/L for March milk, which was offset by a support payment of 2.5c/L in light of exceptionally challenging conditions. This meant an effective milk price payout for March of 34.56c/L including VAT and lactose bonus.

Ornua PPI steadies the ship

Earlier in the week, Ornua announced that its Purchase Price Index (PPI) for April will remain the same as March’s index of 100.4.

This, according to the Irish dairy exporter, works out at 29.6c/L – VAT inclusive – based on Ornua’s product purchase mix and assumed costs of 6.5c/L.

A spokesperson for Ornua revealed that the April 2018 index is unchanged, with higher butter and SMP returns in the month offset by lower cheddar returns.

This month’s PPI follows on from last month, when a sharp drop from February’s index of 105.4 was recorded; this, in turn, followed a steep decrease from January’s figure of 111.3.