Dairy farmers agreed the outline of a deal with processing firms today to end a bitter dispute over milk prices.

Farmers were angry over claims they were getting less than the cost of production for their milk from big supermarkets. The agreement means:

  • Firms buying milk, like big supermarkets, would give a "sensible" notice period when changing their prices

  • It means farmers would have enough time to opt out of any deals

  • Government officials say they could still bring in legislation at a later date if the code failed to work

  • But ministers warn they cannot dictate prices

Neil Connery looks at how both sides have now signed up to the agreement.