First Milk has announced that its milk price will increase by 0.75p per litre for April 2024.
The move means the UK processor's milk price on a manufacturing standard litre will sit at 38.75p per litre, including the member premium.
Mike Smith, vice-chairman, said the introduction of the variable regenerative bonus was an important development.
The bonus rewards the efforts that farmers are putting into driving progress with regenerative farming.
Mr Smith said: "This will be paid in addition to the existing 0.5ppl regenerative bonus, which will remain linked to completion of the regen farming plan each year.”
