Lakeland Dairies has moved to offer its 3,200 suppliers a voluntary fixed milk price scheme for 2025, which the co-op said could be used to offset some of the risks associated with dairy market volatility at farm level.The scheme will allow participating suppliers to lock in prices for 5% to 10% of milk, based on 2023 delivery figures.
Lakeland Dairies has moved to offer its 3,200 suppliers a voluntary fixed milk price scheme for 2025, which the co-op said could be used to offset some of the risks associated with dairy market volatility at farm level.
The scheme will allow participating suppliers to lock in prices for 5% to 10% of milk, based on 2023 delivery figures.
Suppliers who enter these contracts will receive guaranteed prices of 45.80c/l excluding VAT in January to March and October to December 2025 for contracted supplies.
Milk prices of 43.89c/l excluding VAT will be paid for contracted volumes delivered from April to September 2025.
Contracted volumes are eligible for co-op milk bonuses.
Milk suppliers based in Northern Ireland will receive prices of 39p/l and 37p/l for contracted volumes over these respective periods of 2025.
Suppliers can apply online until 2pm Thursday 31 October.
Challenges
Lakeland Dairies’ group CEO Colin Kelly stated that market volatility has become one of the biggest challenges facing dairy farm families over recent years.
“At all times, Lakeland Dairies seeks to offer our farm family suppliers tools and measures to help mitigate against the worst of market downturns,” Kelly commented.
“Fixed milk price schemes provide farmers with a choice and they also give a degree of clarity which allows farmers to plan for the time ahead.
“The scheme is totally voluntary and suppliers should examine the details of the fixed milk price scheme closely, seek advice if necessary and make an informed choice based on all the facts.”
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