The Lakeland Dairies Board has today (Thursday, April 11) decided on a price for milk supplied in March with the base price increasing for all milk supplied, as well as the introduction of input support payment.
A base price of 41.9c/L, based on 3.6% butterfat and 3.3% protein, will be paid for March milk in the Republic of Ireland.
The base price has increased by 0.5c/L on the previous month and also includes the 0.5c/L Sustainability Incentive Payment.
The processor said that a separate 1c/L Input Support Payment is being paid on top of the base price.
This is the second time this year Lakeland Dairies has introduced an Input Support Payment for its suppliers.
This means that the all-in base price for ROI suppliers is 42.9c/L for milk supplied in March.
Lakeland Dairies
In Northern Ireland (NI), a base price of 34.5p/L will be paid for milk supplied in March.
The base price has increased by 0.5p/L on February and also includes the 0.5p/L Sustainability Incentive Payment.
The processor said that a 0.8p/L Input Support Payment will be paid to all NI suppliers, meaning that the all-in price for suppliers in NI is 35.3p/L for March.
Lakeland Dairies has also announced an increase in the feed support for farmers purchasing feed through Lakeland Dairies Agribusiness.
The €20/t and £20/t feed rebate in place since November has been increased to €30/t and £30/t.
A separate €10/t and £10/t support for straights has been introduced to support farmers in stretching silage stocks.
In a statement, Lakeland Dairies said that difficult weather conditions in Ireland are also having an impact on farmers across Europe.
“As a result, spring milk volumes are tempered thus far albeit it is still early in the spring milk season. This is helping to maintain a delicate balance between supply and demand.
“Commodity prices have settled with general stability in the global dairy market, however, there is a continued cautious approach being adopted by buyers at present with no strong surge in demand,” it said.
“We fully recognise the pressure the continued inclement weather is having on farmers and their businesses.
“We have always sought to deliver as much as we possibly can to our farm families and, for the second time this year, we have introduced an Input Support Payment.
“We have increased and extended the hugely popular feed rebate scheme which has been in place since November.
“Lakeland Dairies will continue to explore all options to support our farmers through this challenging time,” the processor added.
Ornua
Meanwhile, it was confirmed yesterday that the Ornua Purchase Price Index (PPI) for March had recorded a slight increase to 132.3 points, up from 131.5 points the previous month.
This index figure implies an indicative return of 37.6c/L, including VAT, for milk at 3.5% fat and 3.3% protein, which the business said is net of its costs to market.
This price is an increase of 0.3c/L on last month’s indicative return.
Ornua said the increase “reflects improved market returns through the month of March.
The price-per-litre accounts for member cooperatives processing costs of 9.4c/L, which is unchanged from last month.