Lakeland Dairies has announced the rolling out of a new voluntary fixed milk price for all its 3,200 farm family suppliers in Ireland and Northern Ireland.
The voluntary scheme, which will run from January to December 2024, will allow Lakeland Dairies suppliers lock in either 5% or 10% of their milk volumes based on 2022 volumes.
In the Republic of Ireland, a price of 39.5c/litre (including VAT) is available for the months of April to September with a price of 40.5c/l (including VAT) available for October to March. This is at 3.3% protein and 3.6% butterfat.
In Northern Ireland, a price of 32.5p/l is available for the period April to September with a price of to 33.5p/l available for October to March.
Online applications through www.lakelanddairies.com will open at 9am on Wednesday 25th October and close on Friday 27th at 12pm. The fixed milk price scheme is also eligible for all existing Lakeland Dairies bonuses.
Commenting on the fixed milk price scheme, Lakeland Dairies’ Group CEO Colin Kelly said:
“We are acutely aware of the volatility of global dairy markets over the past 18 months, with record high farmgate prices in 2022 being followed by an unprecedented market collapse throughout 2023. At all times, we seek to offer our farm family suppliers tools and measures to help mitigate against the worst of market downturns.
“Despite challenges experienced by some farmers nationally with fixed milk price schemes last year, we feel they have been proven to be a useful tool in helping to manage milk price volatility over the last decade. They give farmers a degree of clarity which allows them to plan for the time ahead.
“We believe the price contained in the latest Lakeland Dairies voluntary fixed price scheme offers our farmer suppliers a competitive price based on current and future market projections and conditions. We’re asking suppliers to examine the details of the voluntary fixed milk price scheme closely, take the necessary advice and make an informed choice based on all the facts. The Society does not have a specific requirement for fixed milk price schemes but we feel it is important to give our farm family suppliers the option to lock in a portion of their milk at a price that is above today’s market returns.”