Other Milk Processors Must Follow Lakeland & Increase Milk Price – IFA

IFA National Dairy Chair Stephen Arthur said it’s imperative that milk processors deliver a significant price increase for July supplies.

This follows the announcement by Lakeland Dairies of an increase in base price of 1.75c to 45.25c per litre base price, including VAT, for July milk deliveries.

This price increase reflects recent improvements in global dairy markets, in particular butter, which is performing well in the European markets.

“Cashflow continues to be a major issue on many dairy farms due to ongoing high costs. We need processors to step up and play their part to help alleviate some of those pressures at farm level,” Stephen Arthur said.

“There is clearly capacity for milk price to significantly increase; dairy co-op board members meeting to set their July milk price need to follow the lead set by Lakeland Dairies and deliver a strong increase their base milk price in line with market returns,” the IFA National Dairy Chair said.

“Dairy farmers have put down a horrendous 12 months which has left a massive toll on cashflow. The coming months offer dairy farmers a chance to improve their balance sheet, but they can only do this if their processors step up with a strong milk price,” he concluded.