Farmers who supply Medina Dairy will see a 3 pence per litre increase in the processor's standard litre price starting from January 2022.
The increase will mean the firm's average standard litre price for January will be 32.8 pence per litre, Medina Dairy said.
The processor, which sources from 157 farmers, is a major supplier of fresh milk, dairy and bakery products to the retail and foodservice sectors.
The dairy firm was one of the hardest hit by the impact caused by the UK's coronavirus lockdown period.
Medina supplies thousands of hotels, pubs, restaurants and coffee shops both directly and through a range of wholesale customers.
The processor also supplies dairy to 150 hospitals and 110 care homes as well as some 7,000 local convenience stores.
It follows dairy processor Muller confirming a milk price increase for January 2022 as the sector faces 'increased inflationary pressure'.
First Milk also announced that its milk price will increase by 1 pence per litre with effect from 1 December 2021.
