The board of Lakeland Dairies has set its base milk price at 31.3c/l excluding VAT. This is a 1c/l increase on its May price.

June marks peak production for farmers in the Lakeland milk pool.

Dairy markets have sent mixed signals in recent weeks, with butter prices reaching all-time highs while skimmed milk powder fell back to intervention levels.

IFA dairy chairman Sean O’Leary said last week that current market returns justified at least a 1c/l increase in June prices.

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Irish Farmers Journal/KPMG Milk Price Review: €300/cow milk price gap