Murray Goulburn, Australia's largest milk processor, will now pay an extra one cent per litre to farmers, registering the first price rise this season.

In February, dairy farmers suffered their biggest milk price reduction in 10 years with global milk prices falling and farmers receiving cuts of up to 40 percent.

Murray Goulburn chairman, Ian MacAulay, said the co-op is trying its best to help its farmers.

There have been increases in the export market, though market uncertainties remain, said MacAulay.

Murray Goulburn's managing director, Stephen O'Rourke, said he expects the price rises to continue as there is evidence that production in both the US and Europe are starting to fall.

As a result, the company is confident it will see a better balance towards the second half of this financial year, O'Rourke concluded.