The board of Lakeland Dairies has increased the co-operative’s milk price for October and is the first processor to reveal its price for last month's supply.
In the Republic of Ireland, Lakeland Dairies has increased its milk price by 0.5c/L and will pay a base milk price of 38c/L, including VAT, for milk at 3.6% fat and 3.3% protein.
In Northern Ireland, Lakeland Dairies has increased its milk price by 0.4p/L and will pay a milk price of 30.5p/L.
In a statement, Lakeland Dairiries said "Global dairy markets remain strong at present with continuing restrained milk supply across Europe, New Zealand and the United States.
Strong purchasing and consumption from Asia is also a key market driver."
Lakeland Dairies said it will continue to monitor the market closely in the coming weeks.
October milk price
Yesterday (November 10) an October milk price of more than 40c/L was predicted by the Irish Creamery Milk Suppliers’ Association (ICMSA).
Following a meeting of its dairy committee, the ICMSA’s dairy committee chair, Gerald Quain said they expect processors to announce a price that will be in excess of 40c/L when prices are revealed over the coming week.
“The serious upward momentum behind the rise in dairy markets should result in substantial rises in base milk prices for October milk,” he said.
Even without added value, the Ornua purchase price index (PPI) is showing prices rising by over 1c/L and, when added value is accounted for, the price is well in excess of 40c/L.”
This confirmation from Ornua of price increases is well below the price increases seen in Dutch and European quotes during last month, according to the committee chair.
Dairy farming is entering an uncertain period in terms of regulation, climate mitigation and input costs increases, and the price that farmers receive is going to have to reflect these new realities, he added.