The wholesale price of Jersey Dairy milk is to increase by 5p per litre.
Jersey Dairy says the rise is due to "significant increases in farm costs." The rise will come into force on Monday 5 April.
The company says exports have also been affected by lockdown measures in the UK.
It also says cattle feed and staff costs have gone up by 46% and 58% respectively over the last three years.
After a review of the profitability of its farms, they believe a wholesale price increase is needed if the industry is to have a "sustainable commercial future". It says all the income raised from the price increase will be passed back to the farmers.
However, the business says more will need to be done if it is to address the whole profit issue for its farms. It says it is also looking to increase prices in its export markets.
Prices for other products like butter are being "kept to a minimum."