Milk price dispute

A group of dairy farmers say they may have no choice but to cut the supply of milk, if price cuts go ahead. The people who buy the milk directly from the farmers want to cut the price by nearly 2p a litre.

View all 21 updates ›

Milk premium rise comes into effect

An agreement between dairy farmers and the main dairy buyers comes into effect today. Credit: ITV News Wales

An agreement between dairy farmers and the main dairy buyers, including Dairy Crest, First Milk and Robert Wiseman Dairies, comes into effect today.

The agreement will mean the reversal of the proposed cuts to how much farmers are paid for their milk.

It follows a series of blockades by group Farmers for Action in protest of the prices they receive from suppliers for their produce.

It costs farmers around 30p per litre to produce milk, but most dairy farmers are still operating at a loss as they're being paid around 27p per litre.

Now Welsh dairy farmers say they must secure the long-term future for the industry, and call the current price is unsustainable.

The agreement means that the proposed cuts to 25p per litre that were due to take effect today will now not happen.

But farmer's unions say that still won't balance the books.

More on this story