Lakeland Dairies today (Tuesday, October 13) confirmed the price for milk for the month of September.

According to the co-op its board has agreed to increase the price for September milk.

A base price of 39.7c/L - based on 3.6% butterfat and 3.3% protein - will be paid for September milk in the Republic of Ireland.

This is inclusive of the 0.5c/L Sustainability Incentive Payment.

The processor paid a base milk price of 39.1c/L  for August milk.

The September milk price represents an increase of 0.6c/L.

In Northern Ireland Lakeland Dairies will pay a base price of 31.9p/L for milk supplied in September which is also inclusive of the Sustainability Incentive Payment.

This represents an increase of 0.5p/L on the price paid for August milk.

Milk price

According to the co-op while global milk flows "remain ahead of last year", the rate of growth is continuing to slow.

"As we look forward from a demand perspective, macroeconomic factors such as oil, energy pricing, consumer sentiment, interest rates and general inflation will be the biggest variables in the short to medium term.

"Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers with the best milk price possible in line with market conditions," the co-op stated.

Lakeland's decision to increase the price for September milk follows a similar move by Ornua last week.

The Ornua Purchase Price Index (PPI) has increased for September, resulting in an indicative milk price increase of 2c/L.

The PPI for September is 135.8, an increase of the previous month's index of 130.4.

Ornua said this implies an indicative return of 38.2c/L, including 4.5% VAT, for milk at 3.6% fat and 3.3% protein.

This is an increase on the return for August of 36.2c/L, and is net of Ornua's costs to market.