Lakeland Dairies the first to open the round of milk price setting, with Ornua, Kerry and Glanbia following suit. This comes after the high-volume month of April just gone by.
The board of the Lakeland Dairies co-op held its milk price to an unchanged 29.67 c/l excluding VAT after a meeting of board members last week. They also set the same price in the north also, leaving it at 25p/l. The Lakeland price has remained fairly stable after the latest increases applied to January milk.
This coincides with the announcement that Ornua has kept their purchase price index unchanged, at 105, since the turn of the year. This showed a 0.3 decrease on March prices although the PPI has still remained over 105.
The news comes following a 3.6% rise at the previous Global Dairy Trade, its fourth consecutive rise. With Ireland recently becoming more dominant in the butter trade, becoming Europe’s largest exporter, farmers will be keeping an eye on today’s GDT. In the last GDT butter and butter milk powder prices increased by 1.2(butter) and 8.4% (butter milk powder).
Lakeland accounts released last week show that their operating profits have decreased by almost 50% vas they continued their support of prices paid to suppliers.
With peak production time coming up for dairy farmers, these price stabilisations are welcomed. This week and the proceeding couple of weeks are seen by the dairy industry as peek weeks for milk, with hundreds of millions of litres of milk being processed.
Kerry group and Glanbia have both followed Lakelands lead by announcing their intention to keep prices paid to supplier unchanged for April.
Keryy group will continue to pay its suppliers 29.3c per litre (excluding VAT), while Glanbia will hold its base price at 29.32cent per litre (excluding VAT).
Dairy farmers and Co-ops alike will be surely keeping an eye out for today’s GDT reports.