Lakeland Dairies, the leading Irish agricultural cooperative, has announced it will be significantly cutting the price it pays for milk in March. The news has sent shockwaves through the industry, as dairy farmers brace themselves for further financial challenges in what is already a difficult time for milk production. The move comes as a result of a decrease in demand for dairy products, caused by the ongoing COVID-19 pandemic. In this article, we’ll take a closer look at the current state of the dairy industry in Ireland, the reasons behind Lakeland’s decision, and what this means for dairy farmers across the country.
As a result of worsening global dairy market conditions, the board of Lakeland Dairies has announced a reduction in the cooperative’s milk price for March.
Milk price has been lowered by 4c/L to 42.85c/L inclusive of VAT at 3.6% fat and 3.3% protein in the Republic of Ireland. This price includes an Input Support Payment of 1.5c/L, inclusive of VAT, for all suppliers. In Northern Ireland, milk price has been reduced by 3.5p/L to 35p/L. The March price includes a supplementary Input Support Payment of 1.5p/L.
Lakeland Dairies stated that these adjustments are necessary due to consistently lower market returns along with global dairy supplies exceeding reduced demand levels. They are seeking to implement these corrections sustainably, keeping the high-cost environment in mind. The co-op intends to pay as high a milk price as possible, in line with unpredictable market conditions.
Lakeland Dairies CEO, Colin Kelly, stated that milk price is likely to contract even further in the months ahead as markets continue to determine returns.
“The market today is lower than where, ultimately, the milk price is, so unfortunately a contraction looks inevitable in the short-term. When you look at the market, [it] is returning less than where the milk price is today,” he added.
As we wrap up this article, it’s clear that the dairy industry is facing ongoing challenges. We’ve learned that Lakeland has announced yet another reduction in milk prices for the month of March, adding to the concerns of farmers all over the country. It’s important to stay informed about these changes, and to continue supporting our local farmers in any way we can. As we move forward, let’s hope for better times ahead for our hardworking dairy producers.
