Latest news with #SustainabilityIncentivePayment
Agriland
3 days ago
- Business
- Agriland
Lakeland Dairies confirms May milk price and ‘unconditional' bonus
Lakeland Dairies has today (Friday, June 13) confirmed the price it will pay for milk supplied during May. The board of the dairy processor has decided on a price for milk supplied in May with the base price remaining unchanged. However, the board said that a 0.5c/L unconditional bonus will be paid on all litres supplied in May. Lakeland A price of 49.25c/L (3.6% butterfat and 3.3% protein) will be paid for May milk in the Republic of Ireland. Lakeland said that this price is inclusive of the 0.5c/L unconditional bonus as well as the 0.5c/L Sustainability Incentive Payment. In Northern Ireland, a price of 40.3p/L will be paid for milk supplied in May which is also inclusive of the 0.5p/l unconditional bonus on all milk supplied in May as well as the Sustainability Incentive Payment. 'The global dairy markets are, again, relatively stable month-on-month. This is despite ongoing trade and geopolitical tensions. 'The relative stability in the market is due to the supply / demand dynamic remaining in balance. 'Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers as best we can,' the processor said. Last week, the Global Dairy Trade (GDT) index recorded a second successive decrease in the index figure following its latest trading event. The index decreased by 1.6% on June 3, for an average price of €3,794 per metric tonne (mt). The index figure is now at 1,311. Of the 12 most recent GDT auction events back to December 17, the index has decreased six times, increased five times, and gone unchanged on one occasion. 166 bidders participated in today's event, with 117 bidders emerging from 15 bidding rounds. The event lasted for two hours and 14 minutes, in which 16,307mt of product was sold. In product sub-indices, the biggest movement was for butter milk powder (BMP), which decreased by 6.1% for an average price of €2,482/mt. Another notable decrease was seen for cheddar, which fell back by 4.2%, reflecting an average price of €4,167/mt.
Agriland
12-05-2025
- Business
- Agriland
Lakeland Dairies sets milk price for April
Lakeland Dairies today (Monday, May 12) confirmed that the price it will pay for milk supplied in April will remain unchanged. A base price of 48.75c/L – based on 3.6% butterfat and 3.3% protein – will be paid for April milk in the Republic of Ireland (ROI) – which is inclusive of the 0.5c/L Sustainability Incentive Payment. The co-op said that the base price has been held from last month. Meanwhile in Northern Ireland (NI), a base price of 39.8p/L will be paid for milk supplied in April which is inclusive of the 0.5p/l Sustainability Incentive Payment. The base price has been held from last month. Lakeland Dairies According to the Lakeland Dairies Board 'global dairy markets remain relatively stable at present despite geopolitical tensions and uncertainty over the global economic performance'. However it added: 'Crucially, the supply/demand dynamic remains largely in balance, which is providing market stability. 'Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers as best we can'. The co-op's position on global dairy market is underlined by the results of the latest Global Dairy Trade (GDT) auction, which saw the price index increase by 4.6% last week. The GDT Price Index rose to 1,344 – compared to the previous index figure on April 15 which was 1,285. But the group chief executive officer (CEO) of Lakeland Dairies did also highlight to Agriland last month that US President Donald Trump's policy on tariffs has created a 'huge level of uncertainty' Colin Kelly said that, while Lakeland is not as directly exposed to the tariffs as other businesses may be, the impact of President Trump's decision – and how the EU responds – on the global economy is the more pressing concern for the dairy business. Lakeland, as a processor with facilities and milk suppliers in both the Republic of Ireland and Northern Ireland, is also faced with the challenge of having to observere two different tariff rates, as the US president announced a 10% tariff for the UK but 20% for the EU.
Irish Examiner
23-04-2025
- Business
- Irish Examiner
March milk prices confirmed
Dairygold, Carbery, Tirlán, and Lakeland Dairies have all announced their March milk prices. Dairygold announced they will be maintaining their quoted milk price of 50cpl based on standard constituents of 3.6% butterfat and 3.3% protein, inclusive of sustainability and quality payments and VAT. Dairygold milk suppliers will receive, on average, a farm gate milk price of 55.3cpl based on average milk solids achieved for March 2025. A Company spokesperson commented that 'Dairy markets have remained generally stable, despite the ongoing, significant geopolitical risks. Global milk production remains relatively stable, but buyers remain cautious in advance of the EU peak milk supply, as well as the threat of tariffs.' For the first time in 2025, Carbery reduced its base milk price by 1cpl. With this reduction, if it is applied across all four West Cork co-ops; Bandon, Barryroe, Drinagh and Lisvard, this will result in an average milk price of 52.12cpl, inclusive of VAT, and a 0.5cpl somatic cell count (SCC) bonus and FutureProof sustainability bonus, excluding VAT. A spokesperson for Carbery said: "Our milk price has been strong since the beginning of the year. Our adjustment this month is bringing milk price more in line with actual market performance.' Farmers supplying Tirlán will receive a total of 50.08cpl, including VAT, for March at 3.6% butterfat and 3.3% protein. This price is made up of a base milk of 49.58cpl (including VAT), a reduction also of 1cpl from February and a Sustainability Action Payment of 0.5cpl (including VAT) to all qualifying suppliers. The actual average price paid by Tirlán for March creamery milk, based on delivered constituents, will be 55.24cpl (including VAT). Tirlán Chairperson John Murphy said: 'While dairy markets are relatively stable, our milk price required a realignment to reflect market returns. Overall, supply and demand are generally in balance. Global milk supply growth is weak, with Bluetongue, Avian Flu and Foot and Mouth negatively impacting milk production in some regions. There is considerable uncertainty about the potential impact of tariffs in the coming months. The Board will continue to monitor developments on a monthly basis.' Lakeland Dairies has decided to keep its February milk price for March. A base price of 48.75cpl (3.6% butterfat and 3.3% protein) will be paid for March milk in Ireland, which is inclusive of the 0.5cpl Sustainability Incentive Payment. The Chairperson of ICMSA's Dairy Committee, Noel Murphy, has called for a reversal of cuts made to the February milk price. 'The 'Trump drama' is a medium-to-long-term concern but has no impact on current pricing and must not be used as an excuse to reduce milk price for March. There's a long way to go before we see the true implications of the US imposition of swingeing tariffs, and it's not wise or prudent to anticipate or even guess what's going to happen in the coming months. "The global milk market is in a good position, and with the weather doing its best to drive production across the country, those setting the price should be looking to sunnier days too. There's an unanswerable case to reverse the cuts to February milk price and deliver market returns in excess of 50cpl base price', he said. Mr Murphy said the justification for milk price cuts appears to be based on reductions of 'spot' prices. These February 'spot' prices have not only reversed, but prices have also improved for butter, skimmed milk powder (SMP), and whole milk powder (WMP) during March. The latest Dutch dairy quotations, published on April 16, show that fresh butter price has reduced by €50, resulting in €7,250/t net ex-works, WMP down by €80, resulting in €4300/t, and SMP down by €40, resulting in €2,390/t. As of April 15, Global Dairy Trade (GDT) has reported an overall increase of 1.6% in the GDT Price Index, resulting in an average price of €3,854/t. GDT Price Index also reports an increase of 1.5% in butter, making the weighted average price €6,750/t and an increase of 2.8% for WMP, resulting in a weighted average price of €3,666/t. SMP has seen a reduction of 2.3% on the GDT Price Index, bringing its weighted average price to €2,457.
