Lakeland Dairies has increased its milk price for January by 1.67c/l, excluding VAT.

This brings the co-op’s base price for January to 37c/l, excluding VAT, at 3.6% fat and 3.3% protein.

This follows a 1.1c/l rise, excluding VAT, last month for milk supplied in December.

All suppliers will automatically receive a 0.95c/l early calving bonus, excluding VAT.

Lakeland has introduced a 0.95c/l input support payment, excluding VAT, to assist farmers with costs during the winter period.

Overall, this brings Lakeland’s price for January milk supplies to 39c/l, excluding VAT.

Qualifying farmers will also receive a 4.76c/l out-of-season top-up payment, excluding VAT.

In Northern Ireland, a base price of 31.75p/l will be paid for milk supplied in January. This base price has increased by 1.5p/l, including the new 0.5p/l sustainability incentive payment.

All suppliers in Northern Ireland will also receive the unconditional 1p/l input support payment to increase the base price to 32.75p/l.

‘Tentatively positive’

A statement from the co-op said: “The outlook for the global dairy markets remains tentatively positive after a period of uncertainty at the start of the year, with buyers at the time taking a reserved position, but global milk supply remains muted.

“As we approach the crucial spring-calving season, indicators are pointing to modest improvements in the dairy markets in the short to medium term, with a reasonable balance in the supply and demand dynamic.”