‘Welcome’ Lakeland price boost ‘a benchmark’ for co-ops
The decision of Lakeland Dairies to increase its milk price for June supplies is “the benchmark on which all processors will be judged”, according to the Irish Creamery Milk Suppliers’ Association (ICMSA).
Commenting following the co-op’s price announcement today, Friday, July 10, the chairperson of ICMSA’s Dairy Committee, Gerald Quain, welcomed the move to boost the milk price to 30c/L including VAT, which he said “is in line with market returns”.
Continuing, the chairman said:
The reality is that dairy markets have recovered from the Covid-19 shock and the minimum milk price that any co-op should be paying for June milk is 30c/L – and this is the benchmark on which all milk processors will be judged.
With other co-ops due to set their milk price in the coming days, Quain said:
“A serious question will be asked of any processor who does not come up to the 30c/L benchmark – as anything below this will be the processor holding back on their suppliers who took the full brunt of Covid-19.”
‘Significant market uncertainty’
In its milk price announcement earlier today, 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,” the co-op added.