Lakeland Dairies Reports Steep Revenue Hike, but Warns of Pressure on Milk Prices as China Demand Softens

The dairy industry in Lakeland, a region in central Florida known for its milk production, is facing challenges as demand from China softens. Milk prices have come under pressure, with some farmers struggling to make ends meet. This shift in demand from China is not only affecting Lakeland, but has ripple effects throughout the industry, impacting the global milk market. In this article, we will explore the reasons behind the softening demand from China, its impact on Lakeland’s dairy industry, and what steps farmers and policymakers are taking to navigate this uncertain period.


Lakeland Dairies has seen a significant rise in its revenue by 45% to €1.9bn last year. However, the higher milk prices experienced last year by farmers are unlikely to continue due to weakened demand from China and global market conditions, according to CEO Colin Kelly. The company’s buyer demand has reduced with a shift from a ‘just in case’ strategy to a ‘just in time’ stocking model. The business is focusing on paying competitive prices to farmer suppliers, but rising energy costs and debt are having an impact. Meanwhile, Lakeland Dairies’ higher product prices in stores are a delayed reaction to last year’s costs and are expected to remain. Lakeland Dairies is vulnerable to Brexit disruptions as it is the largest cross-border dairy processing co-operative, collecting milk from over 3,200 farm families across 16 counties. However, unfettered access to both EU and UK markets for farmers under the Windsor Framework ensures continuity.
The company’s operating profit has increased by 15% to €32.5m with its earnings up to €60.2m compared to €4.8m seen in 2021. Shareholders’ funds are at €273m.


In conclusion, Lakeland’s experience reflects the challenges that the global dairy industry faces due to fluctuations in demand and external factors such as trade tensions between major economies. As China’s demand for imported milk softens, it is crucial for dairy producers to adapt to changing market dynamics and take proactive measures to streamline their operations to ensure sustainability in the long run. While the immediate future may be uncertain for dairy farmers, it is imperative for them to stay vigilant, innovate and collaborate with industry stakeholders to ride out the storms and capitalize on emerging opportunities. Ultimately, for Lakeland and other dairy producers, success lies in their ability to stay agile, resilient and responsive to dynamic market conditions in a rapidly changing global economy.