The deal follows the recent announcement of a £30 million improvement in performance at First Milk, led by chief executive Mike Gallachaer.
He said yesterday that the companies had been working together since 2003, in a relationship which he said had focused on building a “long-term sustainable supply chain” which benefited both sides.
Gallacher said: “Nestlé are a hugely important customer for First Milk and I am delighted to see this relationship renewed for the long term.
“Nestlé have consistently supported British dairy farmers and are at the forefront of driving best practice on responsible sourcing and sustainability.”
He added: “Initiatives like our shared Next Generation Young Farmer Programme demonstrate a long-term and strategic commitment to the UK supply chain.”
Nestlé buyer Robin Sundaram said: “We look forward to continuing our strategic long-term partnership to drive our vision of supporting our farmers and our environment.”