Lakeland Dairies sets milk price for October

Lakeland Dairies has announced a milk price for October, which sees its base price in the Republic hold on September rates and a small increase for suppliers north of the Border.

In the Republic of Ireland, a base price of 32c/litre (including VAT) will be paid for milk supplied in October. A lactose bonus of 0.28 cpl also applies this month.

In Northern Ireland, a base price of 26.55p/l will be paid for October milk.

The September base price in the Republic represented an increase of 1c/l on the August price.

In Northern Ireland, a base price of 26.25p/l was paid for September milk. It too had increased by 1p/l on the August price.

A statement from the company in relation to the October milk prices read:

'There is currently a delicate balance between supply and demand in global markets with European production now at a seasonal low while production in New Zealand and Australia approaches its spring peak, and US milk production continues to be subsidised yielding higher volumes than last year into world markets.

'As many countries have reintroduced COVID-19 restrictions, foodservice markets have again been challenged, following from a moderate improvement to date. Markets for butters and powders have come under some pressure over the past month with buyers exhibiting caution in their forward commitments, largely due to weaker consumer sentiment on foot of the global pandemic crisis.'

The looming Brexit deadline is also a cause for concern.

The spokesperson added: "With Brexit close at hand, it is important that there should be agreement of a trade deal between the UK and EU to provide ongoing stability and certainty for the entire dairy industry across the Republic of Ireland, Northern Ireland and Great Britain."

Lakeland Dairies committed to continue to monitor market conditions on an ongoing basis.