According to processors, global milk markets should deliver “good yields for the foreseeable future”.

The global milk market will offer “good returns for the foreseeable future” due to the reduced global milk supply.

Dairy markets remain firm as tighter global supply lags current demand trends,” said a spokesman for Lakelands, who said “markets will continue to offer good returns for the foreseeable future.”

It comes as some major Irish dairy processors have increased their milk prices by at least 2c/l in recent days, having also increased their milk price last month.

Global milk production continued to record an annual deficit in March, with total milk supplies in major producing countries down 0.7 percent since last year, according to the Agriculture and Horticulture Development Board (AHDB).

On average, global daily milk supplies fell by 5.8 million liters per day from March 2021 to March 2022.

Adverse weather has severely impacted milk production in Australia, New Zealand and the US, while Ireland, which had mainly grown last year, fell 2.5 percent in milk production from March 2021 to March 2022.

Daily shipments in the EU-27 fell by 0.5 percent yoy, and declines in the key nations of the Netherlands (-2.5 percent), Germany (-1.4 percent) and France (-1.2 percent ) counteracted the annual growth observed in some areas such as Italy (+2.9 percent) and Poland (+1.8 percent).

It comes as some of Ireland’s main processors have recently announced an increased milk price for May milk.

The Kerry Group announced a 2c/l hike for corn milk, as did Lakeland Dairies, which said global dairy markets “remain firm”.

“Inflation affects farmers, processors and food manufacturers at all levels. Market sentiment is increasingly challenged as rising costs affect all categories of goods and services and the war in Ukraine continues to have widespread effects.

Glanbia also announced an increase of 2c/L for May milk and said dairy markets “continue to develop at high levels, with a balance between reduced global milk supply and some inflationary pressures affecting consumer demand in certain markets.

Dairygold recently announced a 2.5 c/l increase for milk in May, saying the increase “reflects the company’s ability to give back a strong milk price to suppliers due to continued strength in dairy markets”.

A spokesman for the processor said the strength was due to global demand for milk ingredients and supply shortages in key milk-producing regions.

“The Company recognizes the significant increases in supplier input costs this year and will continue to maximize the value of milk returns to meet this challenge.”