Consumers can expect to pay more for milk in Woolworths from Thursday, news that's been warmly welcomed by dairy farmers.

The supermarket giant has increased the price of its homebrand milk to $1.30 a litre with its 2-litre and 3-litre bottles now selling for $2.60 and $3.90 respectively, a 10 cents-a-litre increase, while one litre of milk will cost $1.35.

It's the first increase by the retailer since July 2019 when it lifted its 2 litre to $2.39 and 3 litre to $3.59.

"We've seen farmgate milk prices increase significantly over the past two years and they're forecast to continue rising in the season ahead," a Woolworths spokesperson said.

"As a result of the farmgate price movements, we've been paying our suppliers more for milk in recent years, accepting millions of dollars in wholesale cost increases while maintaining the same retail price on our Woolworths brand milk.

Payday for dairy producers

Dairy advocacy body Dairy Connect's Graham Forbes said the increase was tremendous news for the industry.

"It's been over two years since it was lifted to $1.20 and we're under a lot of inflationary pressure at the moment," Mr Forbes said.

The prices were lifted on the homebrand range without any announcement by Woolworths.

"It's great to see that Woolworths have quietly gone about this and it's disappointing the others don't but they always follow suit," Mr Forbes said.

"We really commend Woolworths, they're great corporate citizens in allowing us to lift the price of milk and they were the ones responsible in breaking the $1 milk that Coles first started."

The Norco supplier is hopeful that Coles and Aldi will follow suit and lift their homebrand milk prices by Friday morning.

"They've come in very quickly every other time, so fingers crossed they'll do the same thing and let's hope we have their support as well," he said.