Lakeland Dairies was the first co-op to set its June milk price this week, at 31.3c/l excluding VAT – a 1c/l increase on the previous month.
June marks peak production for farmers in the Lakeland milk pool.
With the combined increases in supply and price, the co-op said it would pay its suppliers €50m for June milk – its highest ever monthly payout.
PPI
Ornua’s purchase price index for June rose by 3% to 110, which is equivalent to a farmgate price of 31.4c/l excluding VAT.
As more co-ops prepare to set their June price, IFA dairy chair Sean O’Leary said that current market returns justified at least a 1c/l increase.
ICMSA dairy chair Gerald Quain said processors had held back price rises due in May and that now needed to be rectified by meaningful increases for June and July supplies.
Dairy markets: buyer activity easing as holiday season arrives