Lakeland to penalise dairy farmers who keep growing herds

A&B pricing system, designed to discourage growth in milk production, will be introduced here by Co Cavan co-op from 2023

Michael Hanley, chief executive, Lakeland, says new milk-pricing system will address co-op’s decision to limit processing capacity as well as the environmental impact of milk production. Picture: Lorraine Teevan

Ireland’s second-largest dairy co-op has moved to introduce financial penalties on dairy farmers who continue to expand their herds beyond 2021.

Lakeland Dairies, the farmer-owned dairy co-op based in Co Cavan, confirmed last week that it will introduce a new milk-pricing system to discourage continued growth in milk supply from its farmers during the peak months of the year.

Michael Hanley, its chief executive, said 2021 will be used as a reference year for the ...