Northern Ireland's two largest dairy processors have announced milk prices of 26.5p/L.

Dale Farm announced it will pay 26.2p/L for January milk supplies plus its 0.3p/L loyalty bonus - a rise of 0.5p/L on the month before.

A spokesman for Dale Farm said: "The increase in milk price reflects the changing market sentiment which is now evident from recent global auctions."

Market overview

However, despite the uplift in dlobal dairy markets, with the latest GDT auction seeing the fifth consecutive rise, most processors are still showing caution as the UK edges closer to Brexit.

The news comes shortly after cross-border rival Lakeland Dairies announced it would hold its base price for its 750 Northern Ireland producers at 26.5p/L.

It equates to around 32.06c/L for producers in the Republic of Ireland, including VAT and lactose bonus, for January milk supplies.

A spokesman for Lakeland Dairies said: "While global dairy market conditions have remained relatively stable since December, and through January, this is coming from a lower base in the latter half of 2018.

The impending Brexit is creating considerable market uncertainty in Europe and across Great Britain in particular.

"Lakeland Dairies will continue to pay the highest possible milk price in line with market conditions."