Ulster Farmers’ Union (UFU) has called on dairy processors to follow Dale Farm’s lead and increase base prices for June.
The 1ppl rise takes Dale Farm’s base price in Northern Ireland up to 27ppl in June.
With the additional 0.3ppl loyalty bonus and this means that suppliers will be working from a base of 27.3ppl before adjustments.
UFU dairy chairman William Irvine said: “There was disappointment when Dale Farm announced a 0.5ppl increase for May but the 1ppl increase for June is a move in the right direction. We want to see other processors following suit without delay.”
Mr Irvine says market signals are positive and indicate that there is room for further base price increases.
“Based on our analysis, we expect price increases to be sustainable at good levels until the autumn at least.
“Demand for dairy products is driving commodity prices increases and should translate into base price rises for producers.”
AMPE, MCVE and the UFU MPI have all made significant gains over the last two months, with the UFU index up 22 per cent over the same time period.
“Some see this move by Dale Farm as a way to secure their supplier base, and it is welcomed,” Mr Irvine added.
“Other processors must follow their lead and share market gains with their producers. This will go some of the way towards to further helping local dairy farmers recovery from the devastating period of prolonged low milk prices.”
Dale Farm CEO Nick Whelan said: "Dale Farm is pleased to announce this price increase for June, in line with our policy of passing on market benefits to farmers."