The European farmers’ co-operative, which buys milk from around one in four UK dairy farmers, will increase its standard litre price by 1.68p to 26.31p a litre at the start of next month.
The company said the bulk of the increase – 1.51p – was a result of an overall increase in the co-op’s European-wide price.
A smaller 0.17p a litre increase was also being applied due to the company’s exchange rate mechanism.
The dairy giant, which produces Anchor, Cravendale and Lurpak, said this was the fifth consecutive price rise given to farmers with prices up 31% since September 1.
The company’s farmer board director, Jonathan Ovens, said: “Markets continue to be strong, due to the reduction in global milk production coupled with ongoing strong demand.
“In Europe, the markets for added value products continue to strengthen, while spot prices are weakening. The organic market in Europe remains strong.”