lakeland's new price is 24c/l including VAT at 3.3% protein and 3.6% fat. This translates to 22.8c/l excluding VAT.

Lakeland was the first processor to set its price since Ornua's PPI index of dairy commodity prices rose on Wednesday for the the first time in 16 months.

GII followed suit on Thursday evening, increasing its base price from 20c/l to 21c/l including VAT (19.9c/l excluding VAT). Glanbia co-op is maintaining the existing 2c/l top-up for its members.

“We have seen some tentative signs that global dairy markets may be turning in the right direction but are also very aware of the ongoing challenges that our suppliers are facing and we’ll continue to do whatever we can to provide tangible and practical support,” said Glanbia chairman Henry Corbally.

IFA president Joe Healy welcomed the announcement and he said he expects all co-ops to follow suit, in recognition of the growing recovery in dairy markets.

Earlier on Thursday, IFA dairy chair Sean O'Leary said: "With the dire cashflow shortage on farms and prices below the cost of production, farmers will need every extra cent from the market returned by co-ops to help pay bills and rebuild badly shaken confidence."

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Lakeland and Glanbia increase milk price

Lakeland Dairies and Glanbia Ingredients Ireland (GII) have decided to increase their July milk price by 1c/l, the first co-ops to do so after months of decline.