Lakeland Dairies has increased the milk price it pays on existing fixed milk contracts by 8c/l in the Republic of Ireland and 7p/l in Northern Ireland.

Farmer suppliers will receive the supplementary payment for milk supplied in April 2022 until December 2022.

This is to help alleviate the prolonged on-farm cost squeeze for farmers engaged in these contracts, as severe inflationary pressures on feed and fertiliser continue to bite, a spokesperson said in a statement.

Lakeland Dairies added that the supplementary initiative is underpinned by market support from its customers and is intended to assist in currently unprecedented market conditions.