Lakeland pay extra 0.6c/l for all milk supplied last year
Co-op holds price at same level for December milk
Lakeland Dairies suppliers will receive an unexpected windfall as the co-op has announced an "additional payment" to all suppliers, for all litres of milk supplied in 2022 of 0.6 cent/litre plus VAT in ROI.
The money was income set aside to offset expected increase in energy costs. The welcome announcement from the Board came as they also announced that milk prices for December would remain at the same elevated level that has endured for almost half a year.
In the Republic, Lakeland Dairies has maintained the price of 58.85 cent/litre inclusive of VAT, for milk at 3.6% fat and 3.3% protein. This includes an Input Support Payment of 1.5 cent/litre, inclusive of VAT, for all suppliers, including fixed milk price contracts.
In ROI, all fixed milk price contracts will receive an 8c/litre supplementary payment, plus the additional 1.5c/litre Input Support Payment.
Milk suppliers will also receive the respective out of season scheme payments for December in ROI and NI.
Announcing the "additional payment," a Lakeland's spokesperson said:
"This was decided by the Board in December following from a 2022 budgetary provision that was made to cater for extreme energy costs and which fortunately was not required. This payment reflects market conditions and returns for 2022."
While today's announcement was positive for suppliers, it did warn of worsening market conditions.
"For the current year, the Board is aware that market conditions are changing significantly.
"Global milk supplies have continued to grow significantly and markets have weakened very considerably throughout the past quarter. Economic conditions worldwide remain uncertain and consumer spending power is increasingly compromised by inflation and cost of living circumstances, with continuing effects on buying patterns."