Meadow Foods has raised its standard A litre milk price by 2.15p/litre from 1 January 2017.
The increase, the seventh in a row will pay the processor’s 500 producers 26.55p/litre for A litres of milk.
The B price currently stands at 32p/litre.
Prices have now risen by 9.55p/litre since the height of the dairy crisis in July.
“We continue to remain focused on returning any milk price improvements as quickly as possible to our producers as we remain conscious that things remain difficult at this time,” said Simon Chantler, executive chairman at Meadow Foods.
“We will continue to watch the market closely and hope to continue to move our price forward as soon as we can.”
In September the firm announced that it had received a significant strategic investment from US private equity firm Paine & Partners.