Meadow Foods has announced a milk price increase of 1.5 pence per litre for its farmer suppliers, starting from April.
The announcement by the Chester-based firm means that all producers will see their standard litre milk price rise to 36.5ppl.
The new rate for the equivalent manufacturing litre will be 37.13 pence per litre, commencing from 1 April 2022.
Meadow Foods is a major supplier of value-added ingredients to the food industry which processes more than 550 million litres of milk each year.
Jim Bebb, supply chain director at Meadow Foods, said: "We understand that our producers continue to face huge inflationary costs on farm.
"However, with more potential positivity in the milk market we hope that this will translate into further improvements in the milk price.
"We will endeavour to return improved prices to our producers as soon as possible to further relieve these pressures.”
It comes after dairy processor Muller increased its April milk price by 1.5 pence per litre.
