The board of Lakeland Dairies has decided on a price for milk supplied in January, with its base price being held.
A base price of 49.75c/L, VAT inclusive, at constituents of 3.6% butterfat and 3.3% protein, will be paid for January milk in the Republic of Ireland, which is inclusive of the 0.5c/L Sustainability Incentive Payment.
Qualifying farmers will also receive a 5c/L out-of-season payment.
While the base price paid by Lakeland Dairies is unchanged, the move of the VAT rate to 5.1% as part of Budget 2025 means that the VAT inclusive price is 49.75c/L compared to 49.6c/L for December milk.
In Northern Ireland, a base price of 40.8p/L will be paid for milk supplied in January which is inclusive of the 0.5p/L Sustainability Incentive Payment. The base price has also been held from last month. The 3p/L out-of-season payment will be made on top of the base price.
Lakeland said that the global dairy markets in 2025 remain relatively stable, with supply and demand largely in balance.
“As we move further into spring, milk volumes in the main dairy production regions will play a determining role in the shape of the global markets into the peak season,” the processor said.
Lakeland said it will continue to monitor the markets and “will endeavour to support our farmers as best we can”.
Milk price expectations
Yesterday (Tuesday, February 11), the Irish Creamery Milk Suppliers’ Association (ICMSA) said it is “expecting” an increase of 1c/L – and “possibly more” – in milk price paid by processors and co-ops to dairy farmers for January.
The chairperson of the association’s dairy committee, Noel Murphy, suggested that those co-ops with lower prices than others will “feel the pressure to move upwards”.
According to Murphy, the last month has seen further strengthening across the full range of products as supply “stood still or even fell back slightly” in the face of consistent demand.
He claimed that the only “dark cloud” on the horizon was “the prospect of tariffs or the slide into a mutually damaging trade war”, referencing US president Donald Trump, who has frequently threatened the use of tariffs on goods exported from the EU to the US.
