Lakeland Dairies has announced a milk price for August, becoming the first Irish milk processor to do so.
The price was announced following a meeting of the co-op’s board today, Friday (September 11).
In the Republic of Ireland, a base price of 31c/L including VAT will be paid for milk supplied in August.
In Northern Ireland, a base price of 25.25p/L will be paid for August milk. Again, the base price is unchanged.
Commenting on the price, Lakeland Dairies said:
“There is a cautious stability in the market at present; however, there are a number of issues on the horizon that are of concern in the dairy markets.
“The dynamic between supply and demand is a serious concern with production in the main dairy regions growing supply year-on-year. This increase in production is being met by weaker demand from buyers.
On the back of this supply-demand dynamic, volumes of dairy products currently in private storage will be coming back onto the market in the coming months. This has the potential to flood an already depressed market.
“Elsewhere, the serious uncertainty around what shape, if any, a Free Trade Agreement between the EU and the UK post-Brexit is a major concern to all exporting companies.
“Clarity is required in this space as the lack of progress between the EU and the UK is worrying.
“Lakeland Dairies will continue to monitor the market closely in the coming weeks,” the co-op concluded.