Lakeland Dairies has announced a 1c/l drop in milk price for November milk.

Suppliers will be paid 30.41c/l excluding VAT.

However, the processor will pay an extra 3c/l on voluntary November bonus to qualifying suppliers.

Peak to trough

This will be based on peak to trough supply rates, according to Lakeland.

Reflecting on the decrease in price, Lakeland commented on weakening butter and cream markets.

"Butter prices have fallen by over €1,000 per tonne since September," Lakeland stated.

It added that year-on-year milk supplies had increased by 20%, despite difficult on-farm conditions this year.

Merger

The processor is currently entered into merger negotiations with LacPatrick Dairies, which will proceed subject to competition authority approval in the UK and Ireland.