Lakeland increases milk price for September

Lakeland Dairies has announced a milk price for September with the base price increasing.

In the Republic of Ireland, a base price of 32c/litre (including VAT) will be paid for milk supplied in September. The base price has increased by 1c/l on the August price.

In Northern Ireland, a base price of 26.25p/l will be paid for September milk. Again, the base price has increased by 1p/l on the August price.

Commenting, Lakeland Dairies said that there has been “some stability” in the global dairy markets, but still there are “growing worries” around both supply and demand coming down the tracks. “After a subdued first half of the year, supply in many of the main production areas appears to be ramping up through the second half of 2020.

“With demand still subdued, a major surge in milk supply would be concerning for markets ahead of the critical Christmas buying season. There is also a considerable volume of product in Private Storage which will be back on the market in the coming weeks. Demand will need to ramp up to deal with this extra volume,” said Lakeland Dairies.

The company added that while “recent improvement” in Foodservice sales was welcome, as all economies deal with a resurgence of COVID-19, the “recovery for the sector is stop-start with fluctuations in demand.

“The entire dairy industry remains hopeful that a Free Trade Agreement between the EU and the UK can be agreed as ending the transition period without a deal would be extremely worrying for exporting companies.

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