Lakeland Dairies has become the first processor to announce its milk price for supplies in August.

The processor has opted to hold its Republic of Ireland base price at 57.35c/L, including VAT, at 3.6%fat and 3.3 %protein.

However, a input support payment of 1.5c/L will also be made to all suppliers, including those on fixed milk price contracts.

This bring the minimum price for milk at standard constituents to 58.85c/L.

Lakeland said this afternoon that the input support payment “recognises the unwelcome effects of inflation in the rising of all farm inputs”.

The average payout to suppliers in the Republic of Ireland for August milk will be 63.6c/L, the processor said.

Republic of Ireland suppliers in fixed milk price contracts will also continue to receive an 8c/L supplementary payment this month.

Similarly, in Northern Ireland, Lakeland has decided to hold its base price at 46p/L but introduce a 1.5p/L input support payment there as well.

Lakeland said it will pay out 48.98p/L on average for August milk in Northern Ireland, including adjustments for constituents and quality, volume bonuses and zero cartage charges.

All suppliers tied into fixed milk price contracts in Northern Ireland will continue to receive a 7p/L supplementary payment separate to the new 1.5p/L input support payment.

A spokesperson for Lakeland Dairies said today: “Global dairy markets are finely balanced at present, as the rate of milk supply levels off and inflationary pressures continue to drive a cooling-off in demand for higher priced product categories.

“Geopolitical and economic issues continue to affect market and consumer sentiment alongside the potential impacts of an energy crisis in Europe.

“Lakeland Dairies continues to monitor market developments,” the spokesperson added.

Last week was another mixed one for European dairy quotations last week.

According to analysis from multi-national financial services firm StoneX, Butter, skim milk powder (SMP) and whey all moved up last week (the week ending September 4), while whole milk powder (WMP) moved in the opposite direction.