The rise will take the average liquid milk price paid by Dairy Crest to 24.66ppl and follows the announcement last month of a 0.75ppl increase for farmers who supply milk into its Davidstow Creamery.
Dairy Crest had worked closely with its farmer group, Dairy Crest Direct, to improve understanding of the key factors affecting the sector, said Mark Taylor, director of Milk procurement.
"We have committed to DCD that we will share improved market returns with our suppliers and pay a competitive milk price."
The Dairy Crest increase followed an announcement earlier in the week by Robert Wiseman that it had upped its price by 0.4ppl.
Both price movements come in the wake of accusations made by the NFU last month that milk processors were profiteering at the expense of farmers.