Arla Milk Link members will receive a 1.06p/litre farmgate milk price increase from 29 April.
The 1,600 farmers, who are members of Arla Milk Link and own Arla Foods amba, will have their standard litre price brought up to 30.21p/litre.
Arla Foods said the price increase was a result of improved business performance and increases in global commodity prices which are having a positive impact on the retail market.
Arla Foods amba board director Johnnie Russell said: “The much needed price rise is welcome news and comes at a critical time for our owners who, in common with other British dairy farmers, are continuing to face huge pressures on farm as a consequence of increasing on-farm costs and challenging weather conditions.”
Arla’s vice-president with responsibility for UK milk and member services, Ash Amirahmadi, added: “The markets continue to indicate a positive outlook over the coming months and we will pass back further benefits to our farmers as soon as we are able.”