The board of Lakeland Dairies has confirmed that the price for milk supplied in June will see an increase in the base price from last month.

A base price of 43.5c/L – based on 3.6% butterfat and 3.3% protein – will be paid for June milk in the Republic of Ireland. The base price includes the 0.5c/L Sustainability Incentive Payment.

This compares to Lakeland Dairies’ “all-in base price” for Republic of Ireland suppliers of 42.9c/L for milk supplied in May.

The board of Lakeland Dairies has also decided that in Northern Ireland, a base price of 35.8p/L will be paid for milk supplied in June. This is also inclusive of the 0.5p/L Sustainability Incentive Payment.

In Northern Ireland Lakeland paid a base price of 34.5p/L for milk supplied in May.

Lakeland Dairies

According to the co-op the market remains “largely similar” to last month with no significant changes in the supply demand balance.

“Weather and grazing conditions on the island have improved but remain a constant challenge for farmers. 

“Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers as best we can,” the co-op stated.

Ornua PPI

Meanwhile the Ornua Monthly Purchase Price Index (PPI) for the month of June now stands at 140.8, up from the previous month at 135.6.

The latest PPI implies an indicative return of 41.5c/L, inclusive of VAT, for milk at 3.6% fat and 3.3% protein which is net of Ornua’s costs to market.

This represents an increase of 1.9c/L from the previous month of 39.6c/L. Ornua said this reflects improved market returns through the month of June.

In addition, the Ornua Value Payment payable to member co-operatives in the month of June is €14 million, which equated to 5.8% of gross purchases in the month.

Ornua’s estimate of member co-operatives’ processing costs was 8.6c/L last month. The figure has remained the same from the previous month.

GDT

The latest milk prices announced today come against the backdrop of a sharp downward turn in the Global Dairy Trade (GDT) following the latest trading event (Tuesday, July 2) last week.

The index fell by 6.9% from most recent index after the last trading event two weeks ago, the sharpest decline so far this year.

The index figure is down from 1,157 a fortnight ago to 1,077 now, the lowest figure since late March.