Milk prices will be hiked by five cents per litre in stores starting on Feb. 1, the New Brunswick Farm Products Commission announced on Thursday.

Robert Shannon, the commission's chairman, said the price of milk will increase by 2.7 per cent over the 2010 price because of new costs being charged to dairy producers and processors.

"The commission feels that by implementing these adjustments, it has succeeded in upholding its mandate of balancing the interests of producers and processors while maintaining competitive prices for New Brunswick consumers," Shannon said in a statement issued on Thursday.

When the price of milk is increased, dairy producers receive an extra 2.81 cents per litre. And fluid milk processors will receive an additional 1.3 cents per litre.

The commission said the subsidization of the School Milk Program will continue for the current school year.

New Brunswick's processors and producers subsidize the price of milk for school children by roughly $1.3 million per year.