The board of Lakeland Dairies has decided the co-operative’s milk price for February.
In the Republic of Ireland (ROI), Lakeland Dairies has increased its milk price by 2.5c/L to pay 43.5c/L inclusive of lactose bonus and VAT, for milk at 3.6% fat and 3.3% protein.
On average, the Lakeland Dairies pay out in ROI will be over 47.19c/L for February milk, according to the company.
In Northern Ireland, Lakeland Dairies has increased its milk price by 2p/L to 34.7p/L.
On average, Lakeland Dairies will pay out over 36.75p/L for February milk in Northern Ireland, including adjustments for constituents and quality and volume bonuses.
Lakeland has said that dairy markets maintained a positive balance between supply and demand, with a moderation in supplies from other main dairy producing regions.
All dairy markets are good however on-farm and factory processing costs have increased significantly with Lakeland Dairies adding that it will continue to monitor market developments.
Earlier this month, the Irish Creamery Milk Suppliers’ Association (ICMSA) said that milk suppliers would be “looking at some standout points relating to the next round of price announcements”.
“The first thing we are looking at is that fact that the co-ops have seen fit to increase their processing costs by around 25%. That’s fine and we’re satisfied that the inflationary pressures being felt at co-op level can explain that,” ICMSA Dairy Committee chairperson Noel Murphy said.
“But, by exactly the same token, the co-ops will have to accept that their farmer-suppliers are experiencing their own inflationary pressures and our production costs are surging by at least the same level as co-op processing costs.
“So if they want to show us their adjusted costs, then we can show them our adjusted costs,” Murphy argued.