Farmers who supply Medina Dairy will see a 0.30 pence per litre increase in the processor's standard litre price starting from 1 October.
The increase will mean the firm's average standard litre price for October will be 26.05 pence per litre, back to pre-Covid-19 levels.
The processor said the increase reflected a further gradual improvement in the market amid the easing of lockdown measures.
"The 0.30ppl increase for October will take our average standard litre price to 26.05ppl and means that since mid-June we have been able to increase our milk price by +5.30ppl.”
Medina Dairy is a major supplier of fresh milk, dairy and bakery products to the retail and foodservice sectors.
The processor was one of the hardest hit by the impact caused by the UK's coronavirus lockdown period.
It 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.
Because of the lockdown's impact on the foodservice sector, Medina Dairy announced in April a two pence per litre reduction in its standard litre price.
The firm, which sources from 156 dairy farmers, said the impact of the coronavirus had hit 'business and in particular revenues'.