The board of Lakeland Dairies has determined to cut back the cooperative’s milk value for March, as international dairy market circumstances proceed to worsen.
In Northern Eire, Lakeland Dairies has lowered the milk value by 3.5p/L to 35p/L. The March value features a supplementary Enter Assist Cost of 1.5p/L.
Within the Republic of Eire, Lakeland Dairies has lowered the milk value by 4c/L to 42.85c/L inclusive of VAT at 3.6% fats and three.3% protein.
The March value consists of an Enter Assist Cost of 1.5c/L, inclusive of VAT, for all suppliers.
Lakeland milk value
In line with the processor, unstable financial circumstances, diminished shopper confidence and reductions in demand from dairy patrons are yielding persistently decrease market returns, whereas international dairy provides proceed to run forward of those lowered demand ranges.
This has necessitated an ongoing correction in milk costs pending any return to extra balanced provide and demand circumstances, the co-op stated.
In a press release, the processor stated: “Lakeland Dairies is searching for to implement any such changes arising from this market correction as sustainably as doable within the full understanding that milk producers are working in a high-cost setting.
“The cooperative’s intention stays always to pay as excessive a milk value as doable consistent with at present unpredictable market circumstances.”
Earlier this week, Lakeland Dairies CEO, Colin Kelly informed Agriland that milk value within the short-term is prone to contract even additional within the months forward as markets proceed to find out returns.
“The market immediately is decrease than the place, finally, the milk value is, so sadly a contraction appears to be like inevitable within the short-term.
“What stage that will likely be… I am not so certain what that will likely be. In the end it is the job of the board and administration group in Lakeland to set that.
“Whenever you have a look at the market, [it] is returning lower than the place the milk value is immediately,” he added.