Lakeland Dairies has confirmed that it will increase the base price paid to dairy farmers for milk supplied in January.
In a statement today (Thursday, February 10, 2022), the board of Lakeland Dairies said that milk price in the Republic of Ireland will increase by 1c/L.
This will mean that farmers will be paid 41c/L, inclusive of lactose bonus and VAT, for milk at 3.6% fat and 3.3% protein for milk supplied during January.
In Northern Ireland, Lakeland Dairies has increased its milk price by 0.8 p/L to 32.7p/L.
Last month, the board of Lakeland Dairies decided to increase its price by 0.5c/L in the Republic of Ireland for milk supplied in December. It brought the price to 40c/L including VAT and a lactose bonus, for milk at 3.6% fat and 3.3% protein.
In Northern Ireland, farmers were paid 31.9p/L by Lakeland for December supplies – that was an increase of 0.4p/L.
Milk price
The board of Lakeland have stated that there is a “general stability at present in global dairy markets”.
It pointed to a “balance in supply and demand” and added that as economies continue to re-open there are positive trends in dairy commodities and improvements in consumer sentiment.
The board of Lakeland Dairies said that it will “continue to monitor market developments”.
The announcement follows a strong recent performance in the Global Dairy Trade (GDT) price index on February 1.
The index has returned to levels not seen since 2014, recording a 4.1% increase in its latest event.
As a result of the previous auction (January 18, 2022), the index stood at 1,397, which was an increase of 4.6% on the result of 1,336 on January 4.
In the most recent trading event, the strong growth trend continued with the GDT index breaking the 1,400 mark for the first time since March 4, 2014; it now stands at 1,455.