The wholesale price of Jersey Milk has risen by 5%, meaning a litre will cost an extra seven pence.
Jersey Dairy blames the increase on 'ongoing inflationary pressures'.
Managing director Eamon Fenlon says they have worked hard to 'find efficiencies'.
"Like all other businesses, we have continued to experience increased costs over the last year. We are very mindful of the cost-of-living challenges faced by many of our customers and have kept this increase to a minimum.
We are facing increases in packaging, utility and freight costs for 2024 which are significantly increasing our operational costs."
It will be up to individual retailers to choose if they pass on all or some of the increase. If they do, it will push the price of a litre to around £1.60.
In Guernsey, where the wholesale price rose by 6% last weekend, a litre of milk now costs an average of £1.72.
Mr Fenlon says he hopes customers in Jersey understand 'why we must do this'.
"Sustainability of our farms is paramount to ensure an on-going supply of fresh milk and the future of our iconic Jersey cow in its island home.
This price increase will flow through to farmers to enable financial returns to move closer to levels required to stimulate growth and continuance of the sector."
The increase in the wholesale price, which is half of the current 10.1% inflation rate, was approved by the Economic Development Minister, Deputy Kirsten Morel.
He says he was assured that the jump was 'proportionate and necessary'.
Milk prices rose by 15p per litre in January 2023 and by 8p per litre in February 2022.
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