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| Milk price: Farmers and processors agree deal at Royal Welsh | Milk price: Farmers and processors agree deal at Royal Welsh |
| (about 2 hours later) | |
| Dairy farmers and milk processors have agreed on the broad principles of a deal after talks at the Royal Welsh Show, says the UK government. | Dairy farmers and milk processors have agreed on the broad principles of a deal after talks at the Royal Welsh Show, says the UK government. |
| The agreement relates to a voluntary code of practice designed to give farmers more bargaining power. | The agreement relates to a voluntary code of practice designed to give farmers more bargaining power. |
| Dairy UK, which represents processors, said it was pleased but a lot of work still needed to be done. | |
| The finer details will be negotiated between the two sides over the summer. | The finer details will be negotiated between the two sides over the summer. |
| England's farming minister Jim Paice chaired a meeting between the National Farmers' Union (NFU) and Dairy UK at the event in Llanelwedd, Powys, which follows days of protests by farmers over the price they are paid for milk. | England's farming minister Jim Paice chaired a meeting between the National Farmers' Union (NFU) and Dairy UK at the event in Llanelwedd, Powys, which follows days of protests by farmers over the price they are paid for milk. |
| Dairy UK said it was "very pleased that heads of agreement have been reached on the voluntary code of practice". | Dairy UK said it was "very pleased that heads of agreement have been reached on the voluntary code of practice". |
| "There is now a lot of work to be done in taking the code to the implementation stage and we are committed to doing this," it said. | "There is now a lot of work to be done in taking the code to the implementation stage and we are committed to doing this," it said. |
| NFU president Peter Kendall said while Monday's announcement gave some hope for the long term it did not solve today's issues. | NFU president Peter Kendall said while Monday's announcement gave some hope for the long term it did not solve today's issues. |
| "This agreement will give us the architecture we need to make sure that we don't end up with the same dysfunctional markets that are responsible for the dairy crisis we have today," he said. | "This agreement will give us the architecture we need to make sure that we don't end up with the same dysfunctional markets that are responsible for the dairy crisis we have today," he said. |
| Four processors plan to reduce what they pay for milk by 2p per litre on 1 August. | Four processors plan to reduce what they pay for milk by 2p per litre on 1 August. |
| The Welsh government has said it could legislate to help those affected by price cuts if a UK-wide agreement was not reached. | The Welsh government has said it could legislate to help those affected by price cuts if a UK-wide agreement was not reached. |
| Independent adjudicator | Independent adjudicator |
| Before Monday's meeting, Mr Paice discussed the dairy issue with his Scottish and Welsh counterparts, Richard Lochhead and Alun Davies and suggested an independent adjudicator be created to oversee any voluntary code of conduct. | Before Monday's meeting, Mr Paice discussed the dairy issue with his Scottish and Welsh counterparts, Richard Lochhead and Alun Davies and suggested an independent adjudicator be created to oversee any voluntary code of conduct. |
| Farmers want a code of conduct that would give them more bargaining power over the price they can get for their milk. | Farmers want a code of conduct that would give them more bargaining power over the price they can get for their milk. |
| They are often locked into fixed-term contracts with processing firms - effectively middlemen selling the milk on to customers including retailers and food production companies. | They are often locked into fixed-term contracts with processing firms - effectively middlemen selling the milk on to customers including retailers and food production companies. |
| Morrisons, Asda and the Co-op have announced that from 1 August they would increase the premium they pay farmers for their milk. | Morrisons, Asda and the Co-op have announced that from 1 August they would increase the premium they pay farmers for their milk. |
| Meanwhile, more than 100 dairy farmers and members of the Women's Institute protested at supermarket chain Asda's stand at the Royal Welsh Show on Monday. | Meanwhile, more than 100 dairy farmers and members of the Women's Institute protested at supermarket chain Asda's stand at the Royal Welsh Show on Monday. |
| NFU deputy president Meurig Raymond, who farms in Pembrokeshire, told Asda's head beef buyer Jim Biggars: "You can see the anger and despair among farmers here. | NFU deputy president Meurig Raymond, who farms in Pembrokeshire, told Asda's head beef buyer Jim Biggars: "You can see the anger and despair among farmers here. |
| "My message to Asda is to step up to the plate. Please give these people a chance." | "My message to Asda is to step up to the plate. Please give these people a chance." |
| 'Protect dairy farmers' | 'Protect dairy farmers' |
| Mr Biggars said Asda had increased the premium paid to farmers by 2p. | Mr Biggars said Asda had increased the premium paid to farmers by 2p. |
| Allan Edwards, director of public affairs for Asda, said it was committed to working with farmers to find a solution in the long term. | Allan Edwards, director of public affairs for Asda, said it was committed to working with farmers to find a solution in the long term. |
| He said Asda increased the price it paid for milk last week, and other supermarkets then followed suit. | He said Asda increased the price it paid for milk last week, and other supermarkets then followed suit. |
| Processors say the global market milk price has fallen over the past year and that is why many farmers are being paid less. | Processors say the global market milk price has fallen over the past year and that is why many farmers are being paid less. |
| The Welsh government has already started work on draft legislation for fairer dairy contracts. | The Welsh government has already started work on draft legislation for fairer dairy contracts. |
| Speaking on Sunday, Wales' deputy Agriculture Minister Alun Davies said he would prefer a UK-wide solution, but if a proposed voluntary code of practice was deemed insufficient Wales could legislate. | Speaking on Sunday, Wales' deputy Agriculture Minister Alun Davies said he would prefer a UK-wide solution, but if a proposed voluntary code of practice was deemed insufficient Wales could legislate. |