Lakeland Dairies has decided to withdraw its proposed peak milk supply management program for new milk, which was due to begin next year for the 2023 production season and beyond.
The cooperative said the decision came after a “comprehensive review” of current and updated forecast milk supplies, utilization of existing processing capacity and increased investment, as well as evolving legislation.
Environmental legislation and policies related to greenhouse gas emissions, water quality, fertilizer use and biodiversity have picked up pace since the Peak Milk Management program was announced earlier this year, the dairy processor said.
These include changes to the nitrate waiver with new banding rules aimed at reducing emissions based on historical milk yields, which will impact farm stocking densities and milk production growth rate from 1 January 2023.
Group CEO Michael Hanley said: “Lakeland Dairies has closely monitored and reviewed all of these developments over the past year and believes it appropriate to indefinitely withdraw implementation of the Peak Milk Scheme.
“It is also that with continued developments and ongoing investments and expansions in additional capacity taking place across our facilities, a higher than expected level of milk processing has been achieved in 2022 and further capacity will come on line in 2023 and beyond.
“In light of these new circumstances, Lakeland believes it is in the interest of its milk suppliers to withdraw the program. All existing milk sourcing arrangements will therefore remain unchanged and will continue to do so into 2023 and beyond.”
Lakeland also confirmed that it will continue to welcome new entrants into the dairy North and South on an ongoing basis.
“We will be able to invest in additional capacity in the future as needed and this will be reviewed as part of an appropriate and ongoing response to our suppliers’ milk processing needs,” Mr Hanley continued.
Earlier this year, Glanbia Co-op also confirmed that there would be no penalties for peak milk deliveries for 2023.
The decision is due to milk supply to Glanbia in the weeks of peak milk supply in 2022 being 2.3 per cent below last year and 5 per cent below forecast.
In addition, it said that both the voluntary retirement program and investment in processing facilities have successfully delivered additional peak processing capacity to Glanbia Co-op, which will be available in 2023.
https://www.independent.ie/business/farming/news/new-entrants-welcome-as-lakeland-axes-peak-milk-management-scheme-42221592.html Newcomers are welcome as Lakeland advances the Peak Milk Management program