The milk price paid to Glanbia suppliers for June is 31.22c/l excluding VAT for manufacturing milk at 3.6% butterfat and 3.3% protein.

The announcement came after a board meeting on Thursday.

Glanbia Chairman, Henry Corbelly said that reduced milk supply in Europe and continued positive trends in the butter market has contributed to the increase.

"The market for butterfat in particular has been positive, helped by reduced milk supply from Europe’s largest producers, France and Germany, while in contrast, powder markets are more challenging.

"The Board will continue to monitor market developments on a monthly basis" he said.

On Tuesday, Lakeland became the first co-op to set a price for June,when it increased its price by 1c/l to 31.3c/l (ex VAT).

PPI

Ornua's Purchasing Price Index (PII) for June has jumped more than three points since May.

The PPI for June was published on Wednesday and now stands at 110. This is up from from 106.8 in May.

A PPI of 110 represents a farmgate milk price of 31.42c/l (ex VAT). This is the highest the PPI has been at since the Russian food embargo was first introduced in August and September 2014.

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