The Ornua purchase price index (PPI) increased to 105.6 points in October, up from the 103.8 points in September.
This is equivalent to a milk price of 29.88c/l (excluding VAT), Ornua said, based on its product purchase mix and assumed costs of 6.5c/l.
Ornua said that the adjustment for October reflects higher powder and stable butter returns offsetting lower cheddar returns.
It is the first price rise since May of this year, when the PPI was 107.3. The price rise was announced on the back of increased returns in the Global Dairy Trade auction this week.
Average dairy prices increased by 3.7% this week at the auction, with a rise of 6.7% skimmed milk powder (SMP) prices the main driver of the increase.
Skimmed milk powder drives GDT increase
Ornua PPI holds steady for September