A voluntary code agreed by farmers and milk processors will be finalised by the end of August. Politicians arranged a crunch meeting today following blockades at milk processing plants across the country by farmers.
The finer details of the code will now be finalised by all parties by the end of August. The code means in future, contracts between farmers and dairy processors will be freely negotiated, fairer and more transparent.
As part of the agreement, individual farmers can negotiate contracts - covering issues such as pricing and notice periods. Farmers will also have the ability to leave contracts "more easily" if they are unhappy with the price they receive.
The government has agreed a voluntary code of practice between dairy farmers and milk processors.
One of Britain’s leading retailers says it is increasing the premium it pays farmers for their milk.
Some farmers are being paid less for a litre of milk than what it costs to produce it.