Lakeland Dairies announces September milk price

Lakeland Dairies has become the first milk processor to reveal its price for September supplies, announcing that it has held its base milk price.

Lakeland suppliers will be paid 32.78c/L including VAT for September milk supplies.

A lactose bonus of 0.28c/L will also apply for September milk, bringing the effective milk price to 33.06c/L including VAT.

A spokesperson for Lakeland Dairies noted that market demand has weakened for butter and milk powder.

Milk supplies are generally strong at present and are up by over 10% in the current month compared to the same time a year ago, the representative added.

Ornua September PPI dips slightly

Ornua’s Purchase Price Index (PPI) has dropped slightly in the most recent index, according to Ornua.

The dairy exporter’s price index for September is 110.4 – adjusted from 111.1 for August.

This translates to 33.3c/L, VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5p/L.

The September 2018 Index reflects weaker butter and spot dairy prices, offsetting improved returns for cheese and powders, according to a spokesperson for Ornua.

While a decrease on last month, the September PPI still comes in as the third highest recorded in 2018, behind only January and August in first and second place respectively.