Lakeland Dairies has today (Thursday, May 12) announced that it is increasing the price paid to farmers on existing fixed milk-price contracts.
In the Republic of Ireland, all fixed milk volumes will receive an 8c/L supplementary payment from April 2022 - December 2022 inclusive.
In Northern Ireland the corresponding payment will be 7p/L on all milk in fixed-price schemes for the same months.
In a statement, the company said that the decision was made to "help alleviate the prolonged on-farm cost squeeze for farmers engaged in these contracts".
It pointed to the severe inflationary pressures on feed and fertiliser which "continue to bite".
The processor said that the supplementary initiative is underpinned by market support from its customers and is intended to assist in currently unprecedented market conditions.
The announcement makes Lakeland the first processor to supplement existing fixed milk-price contracts.
Ornua previously said that it is working with its member co-ops to provide support to farmers who are struggling with fixed milk-price contracts.
On Tuesday (May 10) Lakeland became the first processor to announce the price it would pay farmers for milk supplied in April.
The board decided that the co-operative’s base milk price for last month would increase by 3c/L to pay 50.1c/L inclusive of VAT, for milk at 3.6% fat and 3.3% protein.
On average, the Lakeland pay out in the Republic of Ireland will be 53.02c/L for April milk. In Northern Ireland, the processor increased its price by 2.5 p/L to 40 p/L.
The announcement was described by the Irish Creamery Milk Suppliers’ Association (ICMSA) Dairy Committee chair as "a benchmark for other milk processors”.
Noel Murphy had previously asked for all co-ops and milk processors to break the 50c/L barrier for April supplies.