First Milk’s standard litre manufacturing and liquid pool prices will rise to 32.5p/litre from 1 December.
Profits from the core business had improved during the past few months and the co-op had diverting a larger proportion of its volume into skimmed milk powder to take advantage of attractive returns, it said.
Progress had also been made by focusing on brand development, lifestyle nutrition, the out-of-home sector and exports.
The liquid pool price will increase by 0.65p/litre, while the manufacturing pool price rises by 0.5p/litre. First Milk also paid a record return on investment for members of 8% in 2013.