Lakeland Dairies increases its milk price for June supplies

Lakeland Dairies has become the first processor to announce its milk price for June milk today, Friday, July 10.

Following a meeting of the co-op board this afternoon, the cooperative revealed an increase of 1c/L to last month’s figure.

This means that suppliers will receive a base price of 30c/L including VAT for June milk.

Meanwhile, Lakeland suppliers in Northern Ireland will receive an increase of 1.25p/L to their milk price, for a June figure of 24.25p/L.

Commenting on the price, Lakeland Dairies said:

“Following the collapse in the global markets, particularly in the foodservice sector, as a result of the outbreak of the Covid-19 global pandemic, an element of stability has returned in recent weeks. Lakeland Dairies is in a position to pass on improved returns directly to our 3,200 farm families.

While sentiment has improved, there continues to be significant market uncertainty around issues such as a second wave of Covid-19, what the shape of a trade deal between the EU and the UK will look like, increasing milk supply in Europe and currency fluctuations.

“Any one of these issues has the potential to cause disruption to the dairy markets.

“Lakeland Dairies will continue to monitor the market closely in the coming days and weeks,” the co-op concluded.

Slight lift in PPI

The Ornua Purchase Price Index (PPI) has increased slightly for the month of June, the company has confirmed.

The PPI index for last month is 101.7 – this is a marginal increase from the figure of 101.1 recorded for May.

The June index converts to 30.1c/L including VAT, based on Ornua’s product purchase mix and assumed costs of 6.5c/L, Ornua said.

The rise is attributable to stable returns across the Ornua product mix, a spokesperson for the Irish dairy exporter explained.

This follows the latest Global Dairy Trade (GDT) event earlier this week, which finished with a strong boost to the index, for a fourth consecutive increase in recent auctions.

The most recent tender – event 263 – concluded on Tuesday, July 7, with the GDT Price Index up 8.3%.