Lakeland sets milk price for August

Lakeland Dairies says there is a “cautious stability” in the market at present, however, issues remain on the horizon that are of concern to the sector.

Lakeland Dairies has announced a milk price for August.

In the Republic of Ireland, a base price of 31c/litre (including VAT) will be paid for milk supplied in August. The base price is unchanged from July.

In Northern Ireland, a base price of 25.25p/l will be paid for August milk. Again, the base price is unchanged.

Commenting on the price, Lakeland Dairies said there is a “cautious stability” in the market at present, however, issues remain on the horizon that are of concern to the sector.

“The dynamic between supply and demand is a serious concern with production in the main dairy regions growing supply year-on-year. This increase in production is being met by weaker demand from buyers.

“On the back of this supply-demand dynamic, volumes of dairy products currently in Private Storage will be coming back on to the market in the coming months. This has the potential to flood an already depressed market.”

Elsewhere, they add, the “serious uncertainty” around what shape, if any, a Free Trade Agreement between the EU and the UK post-Brexit is a “major concern” to all exporting companies.

As a result the locally headquartered company has called for better clarity on the subject.

“Clarity is required in this space as the lack of progress between the EU and the UK is worrying.

“Lakeland Dairies will continue to monitor the market closely in the coming weeks.”