Bega Cheese and Burra Foods have stepped up milk prices for their southern Australia suppliers - their first step ups this season.
They join one other company - Bulla Dairy Foods - in increasing prices this season.
Both announced on Tuesday that prices are stepping up by $0.10 a kilogram milk solids.
Farmers have been agitating for an increase in the farmgate milk price in southern Australia on the back of improved global dairy prices.
The Global Dairy Trade auction posted its seventh consecutive increase last week, with the GDT price index now 22.9pc higher than in November.
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Dairy lobby group Farmer Power welcomed the announcement by Bega.
"All that is needed now is for other processors to also act," it said.
Bega's price increases from $6.40 to $6.50/kg milk solids in southern Victoria and from $6.55 to $6.65/kg milk solids in northern Victoria.
Bega Valley region suppliers will receive $7.60/kg milk solids.
The increase does not apply to the recently acquired Lion Dairy and Drinks and DFMC contracted suppliers.
"It is pleasing to announce this milk price improvement for milk supplied in the 2020/21 year," Bega executive chairman Barry Irvin said in a letter to suppliers.
"The increase reflects a level of dairy commodity market improvements despite the impact of COVID-19 and higher currency.
"We will continue to review farmgate milk price considering market changes and our competitive position."
Mr Irvin said Bega was optimistic about the Lion acquisition creating new opportunities for the company.
"Our new markets and integrated business have the potential to see the company consider new milk supply and milk pricing arrangements that are specific to a region or a brand," he said.
"These changes will be communicated in the months leading up the new season."
Latest dairy news:
Burra's price lifted its prices to a $6.20-$6.60/kg MS range.
Saputo and Fonterra remain at $6.40/kg milk solids - prices announced at the beginning of June as part of the requirements under the new mandatory code of conduct.
Bulla Dairy Foods increased its price by $0.10/kg MS in early December.
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