Milk price protests: Ministers to host dispute talks
Milk price row: Farmers and processors 'agree deal'
(about 3 hours later)
Ministers will host talks between dairy farmers and milk processing firms later, in an attempt to resolve their dispute over prices.
Dairy farmers and the processing firms they supply have agreed on the broad principles of a deal in their dispute over prices, the government says.
The farming minister at Westminster, Jim Paice, will lead the meeting at the Royal Welsh Show, in Powys.
The agreement relates to contracts between farmers and buyers, which could give farmers more bargaining power.
Farmers for Action said more than 2,000 farmers had taken part in blockades in Somerset, Shropshire and Worcestershire on Sunday over the prices they receive.
Farming Minister Jim Paice has been chairing a meeting between the National Farmers Union and Dairy UK, at the Royal Welsh Show, in Powys.
The meeting followed protests about the price farmers are paid for milk.
The finer details of Monday's draft agreement will be negotiated between the two sides over the summer.
Farmers for Action earlier said more than 2,000 farmers had taken part in blockades in Somerset, Shropshire and Worcestershire on Sunday over the prices they receive.
Defra said the protests were "not the way forward".
Defra said the protests were "not the way forward".
The farmers' anger has centred on cuts of up to two pence per litre (ppl) in the amount they receive from major milk processors, set to come in from 1 August.
The farmers' anger centred on cuts of up to two pence per litre (ppl) in the amount they receive from major milk processors, set to come in from 1 August.
Robert Wiseman Dairies and First Milk are cutting the price by 1.7ppl, Arla Foods UK by 2ppl and Dairy Crest by 1.65ppl.
Robert Wiseman Dairies and First Milk are cutting the price by 1.7ppl, Arla Foods UK by 2ppl and Dairy Crest by 1.65ppl.
The processors say they have no choice because the price they can sell certain dairy products for on the commodities market has fallen sharply in the past 12 to 18 months.
The processors had said they had no choice because the price they could sell certain dairy products for on the commodities market had fallen sharply in the past 12 to 18 months.
Last week Morrisons, Asda and Co-op announced that from 1 August they would increase the premium they pay farmers for their milk.
Last week Morrisons, Asda and Co-op announced that from 1 August they would increase the premium they pay farmers for their milk.
Monday's meeting will include representatives of the National Farmers' Union and the trade body for milk processing firms, Dairy UK.
Mr Paice has discussed the issue with his Scottish and Welsh counterparts, Richard Lochhead and Alun Davies.
He has suggested an independent adjudicator be created to oversee any voluntary code of conduct and is hoping to meet representatives of the big supermarkets later this week.
In a joint statement the ministers said: "The dairy sector is a key part of our agricultural industry and all the governments in the UK are determined that it should have a profitable and sustainable future.
"In responding to the current situation, the industry needs to address both the immediate issue of the price paid for milk and also the structures and mechanisms that will help underpin the long-term viability of the sector."
Mr Lochhead said later that legislation should be considered to prevent dairy farmers being exploited by processors and supermarkets.
He said they needed to "rebalance what is a very unbalanced supply chain", adding: "If that doesn't work and we can't reach an agreement today at the show, then all of the administrations - the UK government, the Scottish government and the Welsh government - should be looking at legislation to try and get some fairness into the arrangements between the dairy farmers, the processors and the retailers."
Farmers want a code of conduct put in place that would give them more bargaining power in the price they can get for their milk.
They are often locked into fixed-term contracts with processing firms - effectively middlemen selling the milk on to customers including retailers and food production companies.
Supermarkets assess how much it costs farmers to produce milk and then decide how much to pay above that as a premium, taking into account factors such as rising feed prices.
Members of campaign group Farmers for Action (FFA) have staged a series of blockades over prices at milk processing plants across England since Thursday.
It is warning that cuts in the price paid to suppliers by dairy processors, combined with rising feed costs, could force hundreds of dairy farmers out of business.
FFA vice-chairman Andrew Hemming said 800 farmers blockaded the Robert Wiseman Dairies processing plant near Bridgwater, Somerset, while the BBC's Andrew Plant estimated the numbers totalled 500.
About 300 farmers were at the Robert Wiseman Dairies processing plant in Droitwich Spa, Worcestershire, Mr Hemming said.
More than 1,000 farmers blockaded the Muller Dairy UK Ltd plant in Market Drayton, Shropshire, he added.
Mr Hemming said: "We don't want to be forced into a position where we're going to have to cut the milk supply. We don't want to upset the consumer and we don't want to throw money down the drain, but we will if we have to."
Are you a dairy farmer? Have you been involved in the blockades? You can send us your views and experiences using the form below.
Are you a dairy farmer? Have you been involved in the blockades? You can send us your views and experiences using the form below.
