Cross-border dairy giant Lakeland will reduce the purchase price of milk by 0.75 pence per liter. The reason for this is the uncertainty with Brexit and the decline in profitability in Northern Ireland.
At first, the company announced that it would keep its price in the Republic of Ireland, but later it became known that this did not apply to farmers in Northern Ireland, to whom the company would pay only 25.75 pence per liter of fresh milk.
In February, Lakeland purchased milk from farmers at a price of 26.5 pence. In the near future, Lakeland should become the largest milk producer in Northern Ireland. This decrease in purchase prices will be the last price update before the merger of Lakeland with another Irish dairy company LacPatrick, which is expected 17 days after the final UK exit from the European Union.
Lakeland currently purchases milk from approximately 750 farmers in Northern Ireland, representing about a third of its suppliers and about half of the company's dairy fund. According to a company spokesman, this 0.75 pence reduction in purchase price reflects lower market yields on skimmed milk powder and butter.
