Supermarkets Aldi and Morrisons have agreed to pay farmers more for their milk following days of protests and negotiations.
Aldi will pay farmers 28p per litre from Monday, whilst Morrisons will pay 26p as well as creating their own "Morrisons Milk For Farmers" which 10p per litre will be paid.
Yesterday, Asda also agreed to up the price it paid to suppliers.
Farming unions have claimed milk is sold in supermarkets for less than it costs to produce, shortchanging the supplier by up to 10p per litre.
British milk farmers turned out today in a protest designed to beat the supermarkets at their own game by giving milk, that they say the supermarkets are selling too cheaply, away for free.
The National Farmers Union say the supermarkets don't have a sustainable model for what they charge the consumer for the milk, or what the farmers actually get back.
ITV News Correspondent Ben Chapman reports:
The president of the National Farmers' Union has said that the price of milk has been devalued to the extent that it is now "cheaper than water".
Speaking on BBC Radio 4's Today programme, he said:
Britain's largest dairy firm has delayed payments to farmers because of a slump in the global price of milk, its chairman has said.
First Milk, a co-operative owned by British farmers, said last year was a "year of volatility that has never been seen before" in the global dairy industry.
Its chairman, Conservative MP Sir Jim Paice, said it will delay today's payments to farmers by two weeks and all subsequent payments by a fortnight in order to put the business on a "stronger platform".
He added: "We are aware that hundreds of UK dairy farmers are unlikely to find a home for their milk this spring."
A deal has been struck in principle to end the stalemate over milk prices. 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
A deal has been agreed between dairy farmers and milk processors. The meeting was called by farming minister Jim Paice after protests from dairy farmers over cuts to the price they are paid for their milk. ITV West says the agreement involves setting up a voluntary code of practice.
The Royal Welsh Lady Ambassador has told ITV Wales more needs to be done to protect the dairy industry.
Eleri Evans will appear at the annual Royal Welsh Show, Wales' four-day premier agricultural event, which has become the centrepoint for the dispute over milk pricing.
Dairy farmers are due to have crunch talks with milk processors today as the stalemate over milk price cuts continues.
The two sides are set to meet at the Royal Welsh show in Powys after British farming ministers agreed to push them to back a new code of practice.
Last night more than 2,000 farmers took part in a third round of protests over the milk pricing crisis blockading plants near Bridgwater, Somerset, Droitwich Spa in Worcestershire and Market Drayton in Shropshire.