Lakeland Dairies has announced an increase in its base milk price for July to 36.36c/l, excluding VAT, based on standard constituents of 3.3% protein and 3.6% fat.

This is an increase of 0.96c/l on its June price and excludes 0.48c/l VAT sustainability incentive payment.

Lakeland Dairies said that the market has improved marginally compared to last month, and that milk supply growth is easing somewhat, particularly in Europe, where summer temperatures have had an impact.

"If supply continues to slow, this will support a more positive market environment as the year progresses," the co-op said.

The company said it will continue to monitor the markets and will endeavour to support its farmers with the best milk price possible, in line with market conditions.