Lakeland's milk price level drops further

Lakeland Dairies has reduced the co-operative’s milk price for March as they cite worsening global dairy market conditions.

In the Republic of Ireland, Lakeland Dairies has reduced the milk price by 4cent/litre to 42.85 cent/litre. While the price is high in relation to historic prices, it plummeted 16c/l in just three months from its top level of 58.85c/l.

A spokesperson for the co-op outlined the deteriorating market conditions behind their calculations for March's price: "Volatile economic conditions, diminished consumer confidence and reductions in demand from dairy buyers are yielding consistently lower market returns, while global dairy supplies continue to run ahead of these reduced demand levels. This has necessitated an ongoing correction in milk prices pending any return to more balanced supply and demand conditions.

"Lakeland Dairies is seeking to implement any such adjustments arising from this market correction as sustainably as possible in the full understanding that milk producers are operating in a high-cost environment. The co-operative’s intention remains at all times to pay as high a milk price as possible in line with currently unpredictable market conditions."

The March price of 42.85 cent/litre is inclusive of VAT, for milk at 3.6% fat and 3.3% protein.

The March price includes an Input Support Payment of 1.5 cent/litre, inclusive of VAT, for all suppliers.

Lakeland Dairies yesterday announced that their revenues increased by 45% to €1.9bn across its four operating divisions.