Global dairy markets appear relatively strong, with a general balance in supply and demand worldwide and strong demand in Asia.
Lakeland Dairies observes that normal global trading patterns and market trends have been affected by disruption caused by the Covid-19 variant, which has had a moderating effect on economic activity across every continent.
The diary has set its December 2021 milk price, becoming the first processor to do so. A spokesperson said that: “In the Republic of Ireland, Lakeland Dairies has increased its milk price by 0.5 cent/litre to pay 40 cent/litre inclusive of lactose bonus and VAT, for milk at 3.6% fat and 3.3% protein. Meanwhile, in Northern Ireland, Lakeland Dairies has increased its milk price by 0.4 p/litre to 31.9p/litre.”
Glanbia announced it will pay its member milk suppliers 42c/L (including VAT) for December 2021 creamery milk supplies at 3.6pc butterfat and 3.3pc protein. The creamery price includes an unconditional Late Supply Bonus of 2c/L (including VAT) that will be paid on milk supplied in December.
On January 13, 2022, Glanbia Ireland announced it will pay a base milk price for December of 39.58c/L (including VAT) for creamery milk at 3.6pc fat and 3.3pc protein. This is an increase of 1c/L (including VAT) from the November base price. It added that its Farmer Members will also receive a 0.42c/L (including VAT) payment from Glanbia Co-op on all milk supplied during December as their Share of GI Profit.
Noel Murphy, Chairperson of ICMSA’s Dairy Committee, welcomed the price rises, but said there is still more available from the current market and that ICMSA believes that all milk purchasers should be paying in excess of 40c/L for December milk, as the dairy market data shows that a price in excess of that figure is justified.
“The breaking of the 40c/L ceiling is indicative of a trend that we expect to continue through at least the first half of 2022. ICMSA hopes that the Lakeland announcement will be followed by other milk processors recognising market realities and increasing their price to farmer-suppliers for December milk.”
LSL News.