Another major milk processor has announced that it will not go ahead with a cut next week in the price it pays farmers for its milk. Arla Foods, which includes the Cravendale milk brand, says the decision follows 'an unprecedented two weeks of activity within the industry'.

I am pleased to confirm that Arla is in a position to maintain a standard litre price of 27 pence. We have agreed a transparent reconciliation method with our customers and our supplying farmers to demonstrate that all of the money recovered from the marketplace has been paid out in full.

The announcement comes after similar decisions by First Milk and Dairy Crest. The Farmers' Union of Wales is now calling on all other milk processors to follow their example 'or face the wrath of the industry'.

Dairy farmers have their backs to the wall and are facing further increases in input costs as the summer goes on. We desperately need a long term solution, but in the short term all processors need to undo the damage done over recent weeks and months.