Lakeland Dairies has cut its March milk price in the Republic of Ireland and Northern Ireland.
Farmers in the Republic will receive a price of 28.46c/l, excluding VAT but including a lactose bonus, for March milk, a cut of 1.71c/l on the February price.
In Northern Ireland, a base price of 23.75p/l will be paid for March milk, a cut of 1.5p/l on the February price.
Commenting on the price, a Lakeland Dairies spokesperson said COVID-19 is having a dramatic impact on the dairy markets.
“As the COVID-19 pandemic has continued across the globe, the global dairy markets have collapsed.
“The food-service sector across Europe has suffered near wipe-out following the closure of restaurants, cafes, hotels, while airlines have grounded many planes. Food service is an important route to market for Lakeland Dairies and many dairy processors across Europe.
Butters, powders and cheeses
“Prices for butters, powders and cheeses are under significant downward pressure as food service milk is now flooding into powders and butter.
“Closer to home, sales of fresh milk and butter in retail outlets have increased somewhat but this increase has not offset the drop off in sales in the food-service market.
“Reports from the UK and the US where farmers have been forced to dump to milk as a result of a fall-off in demand, mainly in the food service-sector, have had a serious negative impact on the market.
“The markets are difficult at present and Lakeland Dairies will continue to monitor developments closely in the coming days and weeks.”
Worried farmers
IFA national dairy chair Tom Phelan said it had been contacted by numerous worried farmers who have observed on social media the consequences of COVID-19 in other countries, where the milk of some farmers is having to be disposed of.
“Dairy farmers here can take a great deal of heart from the fact that our industry is driven by the co-operative ethos our forefathers had the foresight to choose for our sector. Our co-ops have a strong track record of collaboration at peak to cope with processing capacity difficulties, which occur every year. They also process our milk mostly into long life, storable commodities, not products destined for the food-services trade, which is temporarily closed,” he said.
“Staff working in our plants and truck drivers collecting our milk are all working very hard and farmers appreciate this. Farmers are also playing our part to ensure the safety of all. Management are working to anticipate staffing issues by training additional employees to do critical jobs, they are redirecting milk to a different plant where necessary, and I am very clear that all are committed to doing everything possible so that every drop of milk is collected and processed through peak and beyond,” he added.
He has asked co-ops to communicate in detail, regularly and frequently with their suppliers.
“We are all in this difficulty together, and we need to work hand in hand with our co-ops to ensure the sector can come through the challenge of the pandemic,” Phelan said.
UFU calls for urgent action
On Wednesday night, the Ulster Farmers Union (UFU) dairy committee held an emergency teleconference and drew up a drew up a toolbox of measures that will be presented to Government to help protect the dairy sector from potentially devastating farmgate price cuts.
UFU dairy chair Mervyn Gordon said: “There is not going to be one single solution or ask that will safeguard our dairy industry from the fall in farmgate milk price. This is why we’re asking for a toolbox of options that will cover the short and long term, ensuring that the local dairy sector has a chance of coming out the other side of this pandemic in a sustainable position.”
The options it outlined include:
A Government top-up to supplement any drop in the farmgate milk price.A Government buying scheme to take products off markets that are struggling. A longer-term UK-specific intervention scheme to take distressed milk off the market for a limited time. It would be a UK-funded scheme to store longer-life products such as powders and cheese. Gordon said: “Northern Ireland dairy farmers were struggling even before this pandemic hit. The prospect of any drop in price, let alone any prolonged period of low prices, will have a devastating impact on our sector if Government does not act urgently.”
Read more
Lakeland bosses take pay cut as dairy prices collapse
Co-ops to set March price next week
Lakeland Dairies has cut its March milk price in the Republic of Ireland and Northern Ireland.
Farmers in the Republic will receive a price of 28.46c/l, excluding VAT but including a lactose bonus, for March milk, a cut of 1.71c/l on the February price.
In Northern Ireland, a base price of 23.75p/l will be paid for March milk, a cut of 1.5p/l on the February price.
Commenting on the price, a Lakeland Dairies spokesperson said COVID-19 is having a dramatic impact on the dairy markets.
“As the COVID-19 pandemic has continued across the globe, the global dairy markets have collapsed.
“The food-service sector across Europe has suffered near wipe-out following the closure of restaurants, cafes, hotels, while airlines have grounded many planes. Food service is an important route to market for Lakeland Dairies and many dairy processors across Europe.
Butters, powders and cheeses
“Prices for butters, powders and cheeses are under significant downward pressure as food service milk is now flooding into powders and butter.
“Closer to home, sales of fresh milk and butter in retail outlets have increased somewhat but this increase has not offset the drop off in sales in the food-service market.
“Reports from the UK and the US where farmers have been forced to dump to milk as a result of a fall-off in demand, mainly in the food service-sector, have had a serious negative impact on the market.
“The markets are difficult at present and Lakeland Dairies will continue to monitor developments closely in the coming days and weeks.”
Worried farmers
IFA national dairy chair Tom Phelan said it had been contacted by numerous worried farmers who have observed on social media the consequences of COVID-19 in other countries, where the milk of some farmers is having to be disposed of.
“Dairy farmers here can take a great deal of heart from the fact that our industry is driven by the co-operative ethos our forefathers had the foresight to choose for our sector. Our co-ops have a strong track record of collaboration at peak to cope with processing capacity difficulties, which occur every year. They also process our milk mostly into long life, storable commodities, not products destined for the food-services trade, which is temporarily closed,” he said.
“Staff working in our plants and truck drivers collecting our milk are all working very hard and farmers appreciate this. Farmers are also playing our part to ensure the safety of all. Management are working to anticipate staffing issues by training additional employees to do critical jobs, they are redirecting milk to a different plant where necessary, and I am very clear that all are committed to doing everything possible so that every drop of milk is collected and processed through peak and beyond,” he added.
He has asked co-ops to communicate in detail, regularly and frequently with their suppliers.
“We are all in this difficulty together, and we need to work hand in hand with our co-ops to ensure the sector can come through the challenge of the pandemic,” Phelan said.
UFU calls for urgent action
On Wednesday night, the Ulster Farmers Union (UFU) dairy committee held an emergency teleconference and drew up a drew up a toolbox of measures that will be presented to Government to help protect the dairy sector from potentially devastating farmgate price cuts.
UFU dairy chair Mervyn Gordon said: “There is not going to be one single solution or ask that will safeguard our dairy industry from the fall in farmgate milk price. This is why we’re asking for a toolbox of options that will cover the short and long term, ensuring that the local dairy sector has a chance of coming out the other side of this pandemic in a sustainable position.”
The options it outlined include:
A Government top-up to supplement any drop in the farmgate milk price.A Government buying scheme to take products off markets that are struggling. A longer-term UK-specific intervention scheme to take distressed milk off the market for a limited time. It would be a UK-funded scheme to store longer-life products such as powders and cheese. Gordon said: “Northern Ireland dairy farmers were struggling even before this pandemic hit. The prospect of any drop in price, let alone any prolonged period of low prices, will have a devastating impact on our sector if Government does not act urgently.”
Read more
Lakeland bosses take pay cut as dairy prices collapse
Co-ops to set March price next week
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