Lakeland warned that there are geo-political concerns, supply chain disruptions and global economic headwinds. Image: Getty
Lakeland Dairies, Dairygold and Carbery have all moved to increase their base milk price for January supplies, as dairy market prices continue to improve on the back of decreased global supply.
Lakeland increased its base price by 1.75c/L including a new 0.5c/L sustainability incentive payment, to 38.90c/L.
All suppliers will automatically receive a 1c/L early calving bonus and are also receiving an unconditional 1c/L input support payment to assist farmers with costs during a challenging winter period.
In Northern Ireland, a base price of 31.75p/L will be paid by Lakeland an increase of 1.5p/L.
“The outlook for the global dairy markets remains tentatively positive after a period of uncertainty at the start of the year, with buyers at the time taking a reserved position, but global milk supply remains muted,” a spokesperson for Lakeland said.
“As we approach the crucial spring-calving season, indicators are pointing to modest improvements in the dairy markets in the short to medium term with a reasonable balance in the supply and demand dynamic.
“However, there are geo-political concerns, supply chain disruptions and global economic headwinds to be acutely aware of. Lakeland Dairies will continue to closely monitor the markets in the coming weeks.”
Carbery increased its base milk price for January by 1c/L along with a contribution of 2c/L from its ‘stability fund’.
If this decision is replicated across the four West Cork co-ops, this will result in an average price for January of 40.05c/L.
A Carbery spokesperson commented: “Dairy markets are beginning to find balance after the turbulence of 2024 and with global milk supplies decreasing. Forecasts remain unpredictable on the demand side, so we will continue to monitor markets closely to determine future pricing.”
Dairygold increased its January milk price by 1c/L also, to 38c/L. In addition, the January Early Calving Bonus of 3.14c/L, will be paid on milk supplied in January, increasing the attainable Dairygold price to 41.14c/L. This equates to an average farm gate milk price of 48c/L.
A Company spokesperson said that: “Dairy market prices have improved in recent months, reflecting a decrease in global milk supplies, but with demand continuing to be volatile, future pricing forecasts remain uncertain.”
