Supermarkets are negotiating to pay suppliers more for cheese and other milk products on the understanding that rises will be passed on to farmers. The talks address industry concern that last month's price increases on retail milk had had a limited impact because supermarket milk represents less than half the market for raw milk. Tesco and Sainsbury said they had increased cost prices for cheese by #200 a tonne, while Safeway and Asda were still locked in discussions with processors and the NFU as The Grocer went to press. {{NEWS }}

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