Lakeland Dairies has held its base price for August milk at 31.10c/l excluding VAT. "While milk powder prices have improved, butter prices have weakened significantly in the past month," the co-op said in a statement this Tuesday.

Last week, Lakeland's chief executive Michael Hanley said he was "surprised at the strength of supply across the rest of the world" despite widespread drought conditions over recent months and warned that global supply would dictate prices for the rest of this year.

Lakeland suppliers delivered 8% more milk in August than the same month last year.

The co-op said it was now surveying dairy farmers to identify fodder stocks and requirements and to assist with the planning of winter feeding.

Last month, Lakeland introduced a €20/t discount on fertiliser bought by milk suppliers and co-op shareholders between 1 August and the end of the fertiliser spreading season. It is now reporting "strong take-up of the measures" as dairy farmers take advantage of improving weather conditions to grow more grass.

Dairy farmers' backs are to the wall - IFA

Lakeland sets August milk price and launches fodder survey

The Co Cavan-based co-op has set its milk price and reports strong uptake of its fertiliser discount.