The Lakeland Dairies board has today (Monday, April 13) agreed to increase the base price for milk by 3c/L for March.

The board has agreed to pay a base price of 36.25c/L – based on 3.6% butterfat and 3.3% protein – for March milk in the Republic of Ireland (ROI) which is inclusive of the 0.5c/L Sustainability Incentive Payment.

Lakeland Dairies had previously paid a base price of 33.25c/L -based on 3.6% butterfat and 3.3% protein – for February milk in ROI.

Last month the co-op also also paid a 2c/L “input support” which it said was aimed at helping and supporting farmers through the current market challenges.

It had also given ROI farmers “the normal 2c/L early calving bonus” last month.

March milk price

In Northern Ireland (NI), the co-op will pay a base price of 28.85p/L for milk supplied in March which was also inclusive of the Sustainability Incentive Payment.

This represents an increase of 2.55p/L.

Previously Lakeland Dairies had paid a base price of 26.3p/L in NI for milk supplied in February which was also inclusive of the Sustainability Incentive Payment.

It had also paid an input support of 1.75p/L to its Northern Ireland suppliers and an out-of-season payment of 3p/L.

Milk price

According to the Lakeland Dairies board global milk output “remains very strong, with volumes in all regions still running well ahead of expectations”.

“This is putting pressure on the product price recovery which had appeared during quarter one (Q1).

“Overall conditions are finely balanced, with added uncertainty continuing to stem from ongoing geo-political pressures,” the board added.

The co-op said it intends to continue to “monitor the markets and will endeavour to support our farmers with the best milk price possible in line with market conditions”.

GDT

Recent results from the latest Global Dairy Trade (GDT) auction underline the pressure now facing the sector.

Following the latest event earlier this month the GDT index recorded a decrease of more than 3% since its previous event.

After the latest trading event on Tuesday, April 7, the index recorded a decrease of 3.4% reflecting an average price of €3,669 per metric tonne (mt).

This is a reversal of the trend which had seen the GDT Index increase consistently since the start of the year in previous events.