Cavan-based Lakeland Dairies has announced its milk price for September supplies and has revealed an increase for last month’s milk.
Lakeland Dairies is the first processor to announce its September prices, doing so after a board meeting yesterday.
The Cavan co-operative will pay 32 cents per litre, including VAT, for September milk – a 1 centre per litre increase in base price.
There is also a rise in the base price in the north, up 1 pence to 26.25 pence per litre.
A Lakeland Dairies spokesperson said that while there is some stability in the global dairy markets but there are growing worries around the supply / demand dynamic.
The spokesperson said demand is still subdued, and a major surge in milk supply would be concerning for markets ahead of the critical Christmas buying season.
Lakeland Dairies added that there is a considerable volume of product in private storage, and demand will need to ramp up to deal with this extra volume.
The spokesperson also said that the entire dairy industry is hopeful for the prospect of a Free Trade Agreement between the EU and the UK but warned that it would be extremely worrying for exporting companies if the transition period were to end without a deal.
Lakeland Dairies says it will continue to monitor the market closely in the coming weeks.
