Glanbia will not impose any milk price cuts in January, February or March, the company confirmed on Monday. Ireland's largest processor has not ruled out a possible milk price rise, advising farmers that it has decided to "hold milk prices at not less than 30.5 cent per litre in January, February and March".

The news comes on the back of recent improvements in global dairy market prices, mainly driven by lower European milk supply and a more favourable euro - dollar exchange rate.

Glanbia's move almost certainly means that all other processors will also hold prices for the coming months. January and February are low volume months for Irish processors, so the price paid is not hugely material to the overall business. However, up to 10% of annual supply is delivered in March.

Glanbia also announced its fifth Index-Linked Fixed Milk Price scheme. This voluntary scheme is available to suppliers who have signed a milk supply agreement (MSA) and will run from April 2015 to March 2018. The company said that "at standard constituents and including VAT the base milk price under the scheme is set at 32.61 cent per litre." This equates to 31 cent per litre excluding VAT at 3.6% fat and 3.3% protein.

Kerry have also announced their first fixed milk price scheme. It will pay €6.70 per kg of protein and €3.35 per kg which equates to 31.185 cent per litre at 3.6% fat and 3.3% protein (32.806 c/l including VAT).