Meadow Foods has announced that it will be increasing its milk price by 1.25p per litre from 1 June for its producers.
The announcement means that suppliers will see their standard A litre milk price rise to 28.25p per litre.
The Cheshire-based firm sources more than 650 million litres of milk a year from its 650 producers.
Chief executive of the processor, Mark Chantler said: “We promised that as soon as we were able to achieve better prices, we would pass the benefit back to our producers and we are pleased to do that.
“This increase reflects a more positive market for the dairy products we sell and lower than anticipated milk volumes.
"We continue to closely monitor the markets closely and remain conscious that there is the main spring flush to come.”
It follows numerous other dairy processors increasing their milk prices from next month and July.
