This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-18946221#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa

The article has changed 11 times. There is an RSS feed of changes available.

Version 6 Version 7
Milk price row: Farmers and processors 'agree deal' Milk price row: Farmers and processors agree draft deal
(40 minutes later)
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.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 agreement relates to a voluntary code of practice designed to give farmers more bargaining power.The agreement relates to a voluntary code of practice designed to give farmers more bargaining power.
Farming Minister Jim Paice has been chairing a meeting between the National Farmers Union and Dairy UK, at the Royal Welsh Show, in Powys. However, the NFU said the agreement would not solve the current issues.
The meeting followed protests over the price farmers are paid for milk. Farming Minister Jim Paice has been chairing a meeting between the NFU and Dairy UK following a series of farmers' protests over the prices they are paid.
The finer details of Monday's draft agreement will be negotiated between the two sides over the summer. The finer details of Monday's draft agreement, reached at the Royal Welsh Show, in Powys, will be negotiated between the two sides over the summer.
Dairy UK said it was "very pleased that Heads of Agreement have been reached on the voluntary code of practice". Dairy UK said it was "very pleased that heads of agreement have been reached on the voluntary code of practice".
"There is now a lot of work to be done in taking the code to the implementation stage and we are committed to doing this," it said. It added: "There is now a lot of work to be done in taking the code to the implementation stage and we are committed to doing this."
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. NFU President Peter Kendall said the announcement gave some hope for the long term but did not solve the dairy farming issues of today.
Defra said the protests were "not the way forward". "This agreement will give us the architecture we need to make sure that we don't end up with the same dysfunctional markets that are responsible for the dairy crisis we have today," he said.
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. BBC political correspondent Alan Soady says the NFU has indicated that the protests by farmers will continue, despite the outcome of the talks.
Campaign group 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.
It has warned 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.
Farmers are angry at cuts of up to two pence per litre (ppl) in the amount they receive from major milk processors, which are 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 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. Processors say that the price of cream on global markets has fallen over the past year - from £1,800 per tonne in June 2011 to £1,020 in June 2012 - and the drop must be reflected in the price they pay to UK farmers.
Last week Morrisons, Asda and the Co-op announced that from 1 August they would increase the premium they pay farmers for their milk.Last week Morrisons, Asda and the Co-op announced that from 1 August they would increase the premium they pay farmers for their milk.
Before Monday's meeting, Mr Paice discussed the issue with his Scottish and Welsh counterparts, Richard Lochhead and Alun Davies and suggested an independent adjudicator be created to oversee any voluntary code of conduct. Before Monday's meeting, Mr Paice had discussed the issue with his Scottish and Welsh counterparts, Richard Lochhead and Alun Davies, and suggested an independent adjudicator be created to oversee any voluntary code of conduct.
In a joint statement issued on Sunday, 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 a joint statement issued on Sunday, the ministers said: "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."
"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 later said the heads of agreement was a "good step forward" but that the dairy sector was "not out of the woods just yet".
Mr Lochhead said later that legislation should be considered to prevent dairy farmers being exploited by processors and supermarkets. "The test of success for our farmers will be when we see them being paid a decent return - and certainly one that is above the cost of production," he said.
Series of blockades Farmers are often locked into fixed-term contracts with processing firms - effectively middlemen selling the milk on to customers including retailers and food production companies.
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.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 has warned 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.
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.