Lakelands say dairy markets 'delicately poised' as they maintain base price
Lakeland Dairies have kept the base milk price for November the same as the previous month, but have given suppliers a 'special bonus' payment.
In the Republic of Ireland, a base price of 32.28c/litre (including VAT / Lactose) will be paid for milk supplied in November. This is the same base price as October. Normal out of season bonus applies for November. A Special Lakeland Bonus of 1 cent per litre (plus VAT) will also be paid for November milk.
In Northern Ireland, a base price of 26.55p/l will be paid for November milk. This is the same base price as October. Normal out of season bonus of 3p/litre applies for November milk. In addition, a Special Lakeland Bonus of 1p/litre will also be paid for November milk.
"The dairy markets are delicately poised as we move into Christmas with a variable balance between supply and demand worldwide, including continuing high levels of supply from New Zealand and the United States approaching record levels of production," said a Lakelands spokesperson. "In Europe, we are still seeing gains being made in production.
"While economies and societies have reopened coming up to Christmas, it remains to be seen what, if any, bounce there will be especially for foodservice with the COVID cloud still deeply disruptive. Until a large scale vaccination programme is rolled out, it is likely that the current approach to dealing with the virus will continue to see a stop-start approach in the foodservice sector.
"Buyers are remaining cautious into 2021 as they await to see how supply, Brexit and COVID-19 will look in the early months of next year. In terms of prices, there has been little in the way of movement for many of the main products. Prices for butter, skimmed milk powder and whole milk powder are tracking stable in general terms."