Rising July milk prices and a jump in the global dairy auction have encouraged dairy farmers to believe a long overdue recovery is under way after a record two-year dairy market slump.

Aurivo Co-op, formerly Connacht Gold, is to invest €40m to boost its processing capacity, with its milk supply set to rise 25% over the next five years.

Aggregate national milk output totalling 1.63% over quota as of end of December will mean heavier superlevy fines than the 2011/12 quota year, the Department of Agriculture has confirmed.