Guernsey's farmers will be paid more for their produce by Guernsey Dairy this year.
Farmers will receive a 5.9% increase on the price of the milk they provide the Dairy.
It reflects the significant rise in costs faced by farmers for feed, fertiliser, and other farm essentials over the past year.
It comes after an independent review of local farm costs took place, which has been warmly welcomed by local farmers.
The last increase given to farmers was in January 2020.
Guernsey Dairy's wholesale liquid milk price has increased by 4.8% from 2 January 2022.
This is below inflation since the last rise in January 2020, with RPIx from September 2021 showing an increase of 5.3%.
The rise in cost also reflects the increased costs seen by other supplies used in Guernsey Dairy's production processes, such as packaging.
Guernsey Dairy Managing Director Andrew Tabel has said it will be up to individual distributors and retailers to determine what price they sell milk for in the island.
He has emphasised that the increase in wholesale price is essential to the maintenance of the countryside and the 'unique' Guernsey cattle breed.