Elaine Watson
The top five multiples have all separately agreed to pay an extra 2p a litre for milk on the understanding that the cash is passed on down the chain to farmers.
The move follows a series of individual, top level meetings between NFU president Ben Gill and bosses at leading retailers and processors.
Emerging from a final meeting with Asda chief operating officer Tony DeNunzio, Gill welcomed the move, but stressed further rises were needed  and these should come out of processors' margins.
Supporting retailers' claims that cuts in farmgate prices since April have not been passed on down the chain, Gill said the onus was now on processors to take the next step.
"There is, as retailers have said, a strong case for processors to restore part of their margin to primary producers in addition to the retail price rise," said Gill. While the talks are encouraging, the NFU will not let the matter rest until the positive statements by retailers translate into a price for farmers nearer the EU target price of 20p per litre."
Asda claimed it had promised "not to exert any downward pressure on cost prices" and had not accepted any price decreases from processors since September 2001.
Processors declined to comment on commercial arrangements with retailers but stressed that farmgate prices were determined by international commodity prices for other products, such as bulk cream and cheese, as well as supermarket milk.
A Dairy Crest spokeswoman said: "Supermarket milk represents only 25% of Dairy Crest's sales".
Wiseman reserved comment, "until it was fully aware of the effect of this announcement on the overall market for the supply of milk."
The move to increase the farmgate price of milk follows a summer of protest from farmers, who claimed they were being paid less than the cost of production for their milk.
Analysts said that since April the price of milk had fallen by 3.25p per litre, including a 1.25p cut imposed by processors in July.
This led to a series of blockades of Dairy Crest and Wiseman processing depots by militant farmers group Farmers For Action.
{{NEWS }}
The top five multiples have all separately agreed to pay an extra 2p a litre for milk on the understanding that the cash is passed on down the chain to farmers.
The move follows a series of individual, top level meetings between NFU president Ben Gill and bosses at leading retailers and processors.
Emerging from a final meeting with Asda chief operating officer Tony DeNunzio, Gill welcomed the move, but stressed further rises were needed  and these should come out of processors' margins.
Supporting retailers' claims that cuts in farmgate prices since April have not been passed on down the chain, Gill said the onus was now on processors to take the next step.
"There is, as retailers have said, a strong case for processors to restore part of their margin to primary producers in addition to the retail price rise," said Gill. While the talks are encouraging, the NFU will not let the matter rest until the positive statements by retailers translate into a price for farmers nearer the EU target price of 20p per litre."
Asda claimed it had promised "not to exert any downward pressure on cost prices" and had not accepted any price decreases from processors since September 2001.
Processors declined to comment on commercial arrangements with retailers but stressed that farmgate prices were determined by international commodity prices for other products, such as bulk cream and cheese, as well as supermarket milk.
A Dairy Crest spokeswoman said: "Supermarket milk represents only 25% of Dairy Crest's sales".
Wiseman reserved comment, "until it was fully aware of the effect of this announcement on the overall market for the supply of milk."
The move to increase the farmgate price of milk follows a summer of protest from farmers, who claimed they were being paid less than the cost of production for their milk.
Analysts said that since April the price of milk had fallen by 3.25p per litre, including a 1.25p cut imposed by processors in July.
This led to a series of blockades of Dairy Crest and Wiseman processing depots by militant farmers group Farmers For Action.
{{NEWS }}
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