Lakeland Dairies milk price drops by one cent for November
Lakeland Dairies has reduced its milk price by one cent for the month of November.
It will pay 32.06 cent per litre, inclusive of VAT and a lactose bonus for November milk supplies. This is a 1 cent per litre reduction on the October milk price.
Lakeland Dairies will also pay an extra 3 cents per litre Voluntary November Bonus to qualifying suppliers, based on peak to trough supply ratios.
The processor notes that global cream and butter markets have become decidedly weaker in recent months.
Butter prices have fallen by over €1,000 per tonne since September.
It also stated that milk supplies have generally been strong and were up by 20% in November compared to the same time a year ago.
Lakeland added that it will continue at all times to pay the highest possible milk price in line with market conditions.
This follows an announcement last month that the UK Competition and Markets Authority (CMA) s investigating the anticipated acquisition by Lakeland Dairies (N.I.) Limited of LacPatrick Dairies Co-Operative Society Limited.
In October Dairy processors LacPatrick and Lakeland agreed terms on a merger, after LacPatrick put itself up for sale earlier in the year.
The new company will be the second-largest dairy processor on the island of Ireland, behind Glanbia, after terms of the merger were agreed following exclusive discussions between the parties started in June.
However, regulatory approval as well as shareholder approval on both sides will be required and the combined business will have turnover in excess of €1bn.