Lakeland Dairies has increased its milk price for August supplies of milk by 1c/L.
This second consecutive increase in milk price from Lakeland will give member suppliers a base price of 25c/L, including VAT, for August milk.
Last month Lakeland increased its milk price by 1c/L and it was the first co-op to increase the milk price in months.
Meanwhile, Glanbia member suppliers will receive 25c/L for August supplies, which includes a 2c/L Glanbia Co-operative Society support payment to its members.
Glanbia Ingredients Ireland (GII) has increased its base price by 2c/L to 23c/L including VAT for manufacturing milk at 3.6% fat and 3.3% protein.
Henry Corbally, Glanbia Chairman, said that there has been a welcome improvement in prices for dairy products on global markets.
“The Board will continue to reflect market returns on a monthly basis,” he said.
The remaining co-ops are set to set the milk price for August supplies in the coming days.
This latest increase in milk price comes after a second consecutive rise in the Ornua PPI and a third consecutive rise in the Global Dairy Trade.
Last week, the Ornua PPI, the monthly indicator of market returns on dairy products sold by Ornua, rose to 85.8 points, rising from the July PPI of 81.8 points.
Ornua’s August PPI is the equivalent of 24.3c/L, VAT inclusive and is based on Ornua’s product purchase mix and assumed costs of 6.5p/L.
Meanwhile, dairy product prices rose 7.7% at last week’s Global Dairy Trade. It followed two bumper Global Dairy Trade auctions, with the last two events registering rises of 12.7% and 6.6%.
The main movers at the last auction were anhydrous milk fat (AMF) (+15.4%) butter (+14.9%) and skimmed milk powder (SMP) (+10%).