Horizon Organic plans to boost what it pays its roughly 600 farmers as demand for organic milk and feed costs rise.
Customers' prices for Horizon products will vary by retailer.
Broomfield, Colo.-based Horizon says starting Feb. 1, it will pay farms an extra $2 per hundred pounds of milk. Horizon spokeswoman Molly Keveney says the total average weighted paid price last year was $28 per hundredweight.
The increase announced Monday is on top of increases announced last fall of $1 per hundredweight in most states and $1.50 per hundredweight in Maine, Maryland, New Hampshire, New York, Pennsylvania and Vermont, where expenses are higher.
Horizon could adjust prices again after re-evaluating market conditions in June.
Horizon is a brand within WhiteWave Foods Inc., which is a Dean Foods Co. subsidiary.