Lakeland Dairies has today (Tuesday, December 13) become the second processor to announce its milk price for November supplies.
In the Republic of Ireland, Lakeland Dairies has maintained the price of 58.85c/L inclusive of VAT for milk at 3.6% fat and 3.3% protein.
This includes a supplementary input support payment of 1.5c/L, inclusive of VAT, for all suppliers, including fixed milk-price contracts.
In the republic, all fixed milk-price contracts will receive an 8c/L supplementary payment, plus the additional 1.5c/L input support payment.
In Northern Ireland, Lakeland Dairies maintained the price of 47.5p/L, including an input support payment of 1.5p/L. All fixed milk-price contracts will receive a 7p/L supplementary payment, plus the additional 1.5p/L input support payment.
Milk suppliers will also receive the respective out-of-season scheme payments of 3c/L in the republic, and 3p/L in Northern Ireland for November supplies, the processor said.
Lakeland Dairies 2022 milk payment
The processor has announced an additional payment in January 2023 for all litres of milk supplied in 2022 of 0.6c/L plus VAT in the republic, and 0.5p/L in Northern Ireland.
Lakeland Dairies said this follows from a current year budgetary provision that was made to cater for extreme energy costs in 2022, and this payment reflects market conditions and returns for 2022.
However, looking towards 2023, the processor’s board is aware that market conditions are changing significantly.
“Milk supply has increased in the large milk production regions across the world and global dairy markets have weakened considerably as a result.
“Higher inflation and interest rate increases have reduced consumer buying power and sentiment remains challenged.
“Lakeland Dairies continues to monitor market developments,” a spokesperson for the processor has said.
Earlier today, Kerry Group became to first processor to set its price for November milk supplies.
The processor’s base price will be 56c/L including VAT, at constituents of 3.3% protein and 3.6% butterfat.
Based on Kerry Group’s average milk solids for November, the milk price return inclusive of VAT and bonuses is 71.84c/L.