Lakeland Dairies (Lakeland) has announced the first milk price of the new year, which will be paid on milk supplied in December.
The business has also announced that an additional payment of 0.6c/L including VAT or 0.5p/L will be made on all litres of milk supplied in 2022.
Lakeland’s board has decided to stick with its current monthly milk price for last month’s milk.
In the Republic of Ireland, Lakeland has maintained the price of 58.85c/L inclusive of VAT for milk at 3.6% butterfat and 3.3% protein.
This price includes an input support payment of 1.5c/L, inclusive of VAT, for all suppliers, including those in fixed milk price contracts.
In the Republic, all fixed milk price contracts will receive an 8c/L supplementary payment.
Lakeland has also opted to hold its price in Northern Ireland, where 47.5p/L will be offered. This also includes an input support payment in the amount of 1.5p/L.
All northern suppliers on fixed milk price contracts will receive a 7p/L supplementary payment.
The additional payment was decided by the board in December following a 2022 budgetary provision that was made to cater for extreme energy costs, and which the processor said was ultimately not required.
“This payment reflects market conditions and returns for 2022. For the current year, the board is aware that market conditions are changing significantly,” a Lakeland statement said.
It added: “Global milk supplies have continued to grow significantly and markets have weakened very considerably throughout the past quarter.
“Economic conditions worldwide remain uncertain and consumer spending power is increasingly compromised by inflation and cost-of-living circumstances, with continuing effects on buying patters.”
Lakeland said it will continue to monitor market developments.
Last month, Lakeland announced that it is withdrawing its peak milk management scheme for new milk.
Lakeland confirmed that, following on from a comprehensive review of current and updated forecast milk supplies; existing processing capacity; increased investment; and evolving legislation, the cooperative had decided to withdraw the proposed scheme.
It had been due to start this year for the 2023 milk production season and onwards but Lakeland has decided to withdraw the implementation of the scheme indefinitely.