Lakeland Dairies withdraws peak milk management scheme for new milk

Lakeland Dairies says it has decided to withdraw it’s peak milk management scheme for new milk indefinitely.
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The announcement comes after a comprehensive review of current and updated forecast milk supplies, existing processing capacity utilisation and increased investment, as well as evolving legislation.

The scheme had been due to start next year for the 2023 milk production season and onwards.

In a statement the company said: “Environmental legislation and continually evolving guidance related to greenhouse gas emissions, water quality, fertiliser use and biodiversity have gathered pace since the peak milk management scheme was announced earlier this year. This includes changes to the nitrates derogation, with new banding rules designed to reduce emissions based on historic milk yields, and which will affect stocking rates on farms and the rate of growth in milk production from 1st January 2023.”

Lakeland milk collection lorryLakeland milk collection lorry
Lakeland milk collection lorry

Group CEO Michael Hanley added: “Lakeland Dairies has closely monitored and taken stock of all such developments throughout the past year and believes it is appropriate to withdraw the implementation of the peak milk scheme indefinitely. It is also the case that, with continuing developments and ongoing investments and enhancements in extra capacity taking place across all our facilities, higher than anticipated levels of milk processing were achieved in 2022 and further capacity will come on stream in 2023 and beyond.

“Taking these new circumstances into account, Lakeland believes it is in the interests of its milk suppliers to withdraw the scheme. All existing milk procurement arrangements will therefore remain unchanged and will continue as they are now and into 2023 and onwards.”

Lakeland Dairies also confirmed that it will continue to welcome new entrants to dairying on a continuing basis, north and south.

“While a large proportion of Lakeland Dairies’ milk suppliers had indicated in our milk survey that they intended to supply additional milk to the co-operative in the years ahead, it is apparent that the likely pace of this growth has moderated and that a continuing balance of processing capacity and milk supply can be maintained in line with sustainability requirements for the years ahead.

“Over the past decade, the volume of milk supplied to Lakeland Dairies for processing has more than doubled to a current level of over 2bn litres annually. In that time, the co-operative invested over €200 million in new processing capacity to cater for milk supply growth, achieving economies of scale and ensuring the processing of all milk. We will be in a position to invest in further capacity if necessary in the future and this will be kept under review as part of an appropriate and continuing response to the milk processing requirements of our suppliers. This decision continues to support the principles of sustainable production including the potential for growth, while providing an appropriate level of balance between milk supply, processing capacity and flexibility in meeting market needs.”

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