Lakelands Dairies has again increased its milk price, announcing the price it will pay farmers for August milk supplied as 55.78c/l excluding VAT. It is the first co-op to lay down a price marker for last month’s milk.
The price will be paid at 3.6% fat and 3.3% protein and equates to a 1.5c/l increase in price on what the co-operative paid for July milk supplied. This 1.5c/l increase reflects a new input support payment for farmers.
The board of Lakeland Dairies says it is “recognising the unwelcome effects of inflation in the rising costs of all farm inputs” and that it has “implemented a supplementary payment for all suppliers, including suppliers on fixed milk price contracts”.
Fixed milk contracts
Lakelands Dairies said that, in the Republic, all fixed milk price contracts will receive an 8c/l supplementary payment, plus the additional 1.5c/litre input support payment, for August milk.
A spokesperson for the co-op said: “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,” they said.