Lakeland Dairies has announced its milk price for supplies in January, confirming a 6c/L cut in its offering.
The price for suppliers in the Republic is Ireland is 52.85c/L including VAT for milk at 3.6% fat and 3.3% protein.
This figure includes an input support payment of 1.5c/L including VAT for all suppliers.
Aside from this price, an early calving bonus of 1c/L will apply for all milk supplied in January.
In Northern Ireland, Lakeland has reduced the milk price by 5p/L to 42.5p/L, which also includes an input support payment of 1.5p/L.
Lakeland said that its cut to milk price follows “consideration of all current market conditions”.
In a statement today (Monday, February 13), the processor said: “High rates of inflation are affecting overall market sentiment. Demand has reduced, buyers have held back, exports have slowed and prices have eased considerably.
“This will have a continuing impact for all processors during 2023 and will continue to affect milk price, in line with weaker market conditions over the coming months,” the statement added.
“While the overall balance of supply and demand is challenged by increasing supplies, softer demand and reduced returns, Lakeland will pay as competitive a milk price as possible, in line with market conditions.”
The announcement of the price comes after the processor said last week that a milk price “correction” was on the cards.
The co-op highlighted to suppliers that, in the past number of months, dairy markets have “weakened significantly” with butter and skim milk powder (SMP) currently sitting around 40% lower than they were in September 2022.
In its correspondence to suppliers it pledged to “maximise the return” to members but it also sounded a cautionary note about market pressures at this time.
The processor told suppliers that it is very aware that any movement on milk prices will have a major impact on farm families as inflation-driven input costs continue to create significant challenges.
In a statement to Agriland, the Cavan-headquartered co-operative said: “Lakeland Dairies is continuing to monitor market developments and is keeping milk suppliers updated on an ongoing basis.”