The board of Lakeland Dairies has increased the co-operative's price for February milk supplied by 2.5c/l to pay 41.2c/l excluding VAT for milk at 3.6% fat and 3.3% protein.

This means that, on average, the Lakeland Dairies payout in Republic of Ireland (ROI) will be over 44.72c/l excluding VAT.

The co-op said that dairy markets had maintained a positive balance between supply and demand, with a moderation in supplies from other main dairy producing regions.

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A spokesperson said that all dairy markets are good, but noted that on-farm and factory processing costs have increased significantly.

Lakeland Dairies said it will continue to monitor market developments.