Lakeland increases milk price for January supplies
Lakeland Dairies has become the latest processor to announce its milk price for January supplies, deciding to increase its price following a board meeting today, Thursday, February 13.
In the Republic of Ireland, a base price of 31.81c/L including VAT and lactose bonus will be paid for milk supplied in January
In Northern Ireland, a base price of 25.25p/L will be paid for January supplies. The base price has been increased 0.25p/L.
Commenting on the price, a co-op spokesperson said:
“While European and US milk production has returned to growth in recent months, the global dairy market fundamentals are reasonable with supply and demand pretty well balanced. However, there is a growing concern in the market on the back of the coronavirus.
Over the past month, sentiment in China has become weaker as authorities there move to get a handle on the virus. This has resulted in a slowing of consumer sentiment and distribution channels.
“Lakeland Dairies will continue to monitor the market situation closely over the coming weeks,” the co-op spokesperson concluded.
Meanwhile, yesterday, Kerry Group decided to hold its offering from last month.
The group has set a price of 31.5c/L including VAT. Based on January milk solids, the price return is expected to be 36.1c/L, the processor said.
Last month, Kerry offered the same base price, along with a one-off ‘goodwill payment’ agreed with Kerry Co-Operative Creameries Limited in relation to Kerry Milk Supply Contract payments.
On Monday, February 10, Glanbia announced an increase of 1c/L to its base price – it will pay suppliers a base milk price for January of 31c/L including VAT for creamery milk at 3.6% fat and 3.3% protein.
Glanbia’s farmer members will also receive a 0.42c/L payment, inclusive of VAT, from Glanbia Co-op on all milk supplied this month as their ‘Share of GI Profit’.
In addition, an Early Calving Bonus of 4c/L, including VAT, will be paid to creamery suppliers for January milk.
This, the processor says, will bring the price member suppliers will receive up to 35.42c/L including VAT.