Muller Wiseman will not cut its milk price for the first month of the next production year.
Farmers supplying the Glasgow processor will continue to be paid 24.15p/litre from April.
Since October Muller has been cutting prices every other month and farmers are being paid 9.45p/litre less than they were this time last year.
Muller Wiseman Dairies managing director Carl Ravenhall said he was encouraged by recent signs of improvement in global commodity markets and hoped it established a trend.
Returns on the Global Dairy Trade auction have risen 34% since slumping to a five-year low in mid-December.
“On the supply side, production of farmgate milk will speak over the next period and we hope that this will be at a level which supports, rather than undermines stability and progress,” Mr Ravenhall said.
Key UK market indicators have also started to increase in the past few weeks.
The Actual Milk Price Equivalent jumped 21% to 23.6p/litre in February, while the Milk for Cheese Value Equivalent rose 13% to 25.9p/litre.
A DairyCo report said this was due to mix of rising global prices, a weakening euro and falling milk deliveries, especially where EU countries faced superlevy fines for exceeding their quotas.
“Buyers are now reported to be waiting to assess the strength of the upturn in mild deliveries before agreeing longer-term deals, which means it is unclear how markets will move in the next few months,” the report said.