Robert Wiseman Dairies has increased the price it pays its farmer suppliers by 0.3p/litre from next month.
The increase takes the company's price to 24.32p/litre from 1 August and will be guaranteed for two months.
Better returns from the bulk cream market in the last quarter had allowed farmgate prices to be increased, Wiseman's milk procurement director, Pete Nicholson, said.
"We would stress that commodity markets remain fragile and it's certainly too early to call an end to the recent period of volatility," he said.
Wiseman's farmgate milk price from October will be confirmed in late September once the company has reviewed the latest bulk cream returns and the positioning of its milk price in comparison to competitors.
NFU Scotland welcomed the milk price increase and urged all other fresh liquid milk processors to react immediately in a similar positive vein. For those involved in producing cheese and other dairy products, there was a real need for them to also improve their prices in the near future, it said.
"The prices received by dairy farmers for their milk have fallen by almost 20% in the first seven months of 2009 and are stumbling along at a level that is well below the cost, to a farmer, of producing that milk," NFU Scotland's milk committee chairman, Jimmy Mitchell said.
"That cannot continue and other parts of dairy supply chain need to wake up to the reality that paying unsustainable prices over a prolonged period places our whole dairy sector in jeopardy.
"Milk buyers and retailers need to send a clear signal to all dairy farmers that their milk is wanted and valued appropriately. This milk price announcement from Robert Wiseman must provide the impetus for all farmgate prices to improve in the very near future."