Lakeland Dairies is the first processor to announce its price for February milk supplies.
A base price of 41.4c/litre (3.6% butterfat and 3.3% protein) will be paid for February milk in the Republic of Ireland.
The base price has increased by 1.5c/litre including the new 0.5c/litre sustainability incentive payment.
The 1c/litre input support payment paid on all January milk now forms part of the base price for February milk.
All suppliers will automatically receive a 2c/litre early calving bonus meaning the price all suppliers receive for February milk is 43.4c/litre.
Meanwhile, qualifying farmers will also receive a 5c/litre out-of-season payment.
In Northern Ireland, a base price of 34p/litre will be paid for milk supplied in February.
The base price has increased by 1.25p/litre including the new 0.5p/litre sustainability incentive payment.
The 1p/litre input support payment paid on all January milk also now forms part of the base price for February milk.
A Lakeland spokesperson said that global dairy markets “remain in a delicate position with the supply/demand dynamic tentatively poised”.
“Buyers are continuing to adopt a cautious approach but demand remains reasonably solid driven by weaker production in Europe and New Zealand,” the spokesperson said.
“As we approach the critical spring season in Europe, milk supply is expected to remain sluggish which should assist in providing stability to the market.
“Geopolitical tensions, supply chain disruptions and global economic headwinds remain a concern and will require careful management and monitoring.”
