Lakeland Dairies has introduced its milk worth for provides in January, confirming a 6c/L reduce in its providing.

The value for suppliers within the Republic is Eire 52.85c/L together with VAT for milk at 3.3% fats and three.6% protein.

This determine contains an enter help cost of 1.5c/L together with VAT for all suppliers.

Except for this worth, an early calving bonus of 1c/L will apply for all milk equipped in January.

In Northern Eire, Lakeland has diminished the milk worth by 5p/L to 42.5p/L, which additionally contains an enter help cost of 1.5p/L.

Lakeland mentioned that its reduce to exploit worth follows “consideration of all present market situations”.

In a press release in the present day (Monday, February 13), the processor mentioned: “Excessive charges of inflation are affecting general market sentiment. Demand has diminished, patrons have held again, exports have slowed and costs have significantly.

“It will have a seamless affect for all processors throughout 2023 and can proceed to have an effect on milk worth, in keeping with weaker market situations over the approaching months,” the assertion added.

“Whereas the general stability of provide and demand is challenged by growing provides, softer demand and diminished returns, Lakeland pays as aggressive as milk worth as attainable, in keeping with market situations.”

The announcement of the value comes after the processor mentioned final week {that a} milk worth “correction” was on the playing cards.

The co-op highlighted to suppliers that, prior to now variety of months, dairy markets have “weakened considerably” with butter and skim milk powder (SMP) presently sitting at round 40% decrease than they have been in September 2022.

In its correspondence to suppliers it pledged to “maximise the return” to members however it additionally sounded a cautionary notice about market pressures presently.

The processor informed suppliers that it is vitally conscious that any motion on milk costs may have a significant affect on farm households as inflation-driven enter prices proceed to create vital challenges.

In a press release to Agriland, the Cavan-headquartered co-operative mentioned: “Lakeland Dairies is continuous to watch market developments and is retaining milk suppliers up to date on an ongoing foundation.”