Milk price dispute

ITV Wales understands a deal has been agreed between dairy farmers and milk processors after a meeting at the Royal Welsh showground in Powys this morning.

The meeting was called by farming minister Jim Paice after protests from dairy farmers from Wales and across Britain over cuts to the price they are paid for their milk.

The agreement regards establishing a voluntary code of practice for those within the industry - but terms and conditions have yet to be finalised.

UK Government ministers will meet dairy farmers at the Royal Welsh Show later for talks on milk prices.

Farmers have held a series of protests at processing plants over the last week - and again last night - angry at cuts in the price paid to suppliers by dairy processors.

They're warning that the price cuts, combined with rising feed costs, could force hundreds of dairy farmers out of business.

Processors say the global market price of milk has fallen over the last twelve months, resulting in many farmers being paid less.

Agriculture minister Jim Paice, along with his Welsh and Scottish counterparts Alun Davies and Richard Lochhead, are united in pressing for both sides to back a new code on milk contracts, according the Department for Environment, Food and Rural Affairs.

A spokesman for the Department for Environment, Food and Rural Affairs (Defra) says that a meeting at the Royal Welsh Show tomorrow, chaired by the UK Farming Minister Jim Paice, aims to break the deadlock between dairy farmers, milk processors and supermarkets in a dispute over milk prices.

The Farming Minister wants to broker a deal over a code of practice for the milk industry, as the current pricing arrangements are "not sustainable." Defra say he has been heavily involved in negotiations in recent weeks, and has called in the big supermarkets for a meeting on Wednesday.

The Welsh Government's Deputy Minister for Agriculture, Alun Davies, will also be at the meeting, at the showground in Llanelwedd.

Environment Secretary Caroline Spelman and Farming Minister Jim Paice will hold talks with dairy farmers at the Royal Welsh Show to try to resolve issues over the price of milk. They will meet representatives of the industry at Llanelwedd on Monday.

The Co-operative and Morrisons supermarket chains have announced rises in premiums paid for milk to farmers.

Farmers have already staged blockades and have threatened more protests over cuts of up to 2p per litre in the amount they receive from milk processors.

Welsh dairy farmers say they are planning to hold more protests against cuts in the price they're being paid for their milk.

Farmers from across Wales blockaded a milk processing plant in Somerset last night as part of their campaign.

Nicola Hendy has the latest on this story.

Chairman of Farmers for Action, David Handley, farms in Monmouthshire. He was one of hundreds protesting across England against milk price cuts last night, leading a protest at the Robert Wiseman Dairy in Bridgwater, Somerset.

Speaking to ITV West & Westcountry, Mr Handley said that the dairy's decision to cut the amount it pays for milk meant farmers were losing money on every litre of milk they produce.

"It cannot be done" he said.

"So all they've got to do is reinstate the money, then we can sit down and talk about the future and make this this never happens again."

The Robert Wiseman Dairy says the cut is down to market forces, and that it's done all it can to minimise the reduction.

Dairy farmers will attend an emergency union meeting in West Wales tonight. It's over concerns about price cuts to milk, which farmers say are 'crippling'.

The Farmers Union of Wales (FUW) will meet with leading Welsh politicians in Llandeilo tonight to address the issue.

Dairy farmers will attend a key union meeting in west Wales this week. It's after concerns from the Farmers Union of Wales (FUW) that price cuts to milk could spell the 'demise' of the industry.

Farmers are calling for changes to be made to ensure that a fair price is paid for the production of milk.

The FUW president, Emyr Jones, along with a group of leading Welsh politicians, will address the emergency meeting, which will be held on Thursday 19th July.

Mr Jones says it is 'essential' for the dairy industry to 'stand together at this critical time'.