SHOPPERS will be given an opportunity to pay a fair price for their milk at Morrisons after the supermarket chain announced a new milk brand which will see an extra 10p paid per litre to farmers, the company says. The move comes after farming industry leaders met bosses of the supermarket chain to discuss the price of milk.

This followed weeks of unrest and protests staged by dairy farmers including one in Asda Hereford. Members of Farmers for Action (FFA) bought all the milk on the shelves and then gave it away in return for donations to the Air Ambulance and St Michael’s Hospice. The total donated was £314.

The FFA welcomed the announcement but said they plan further meeting with Morrisons as this does not go far enough.

Dairy farmers say they are struggling to stay in business because of a sharp drop in the amount they are paid.

The industry says a reduction in global demand for milk has led to an over-supply in the UK, creating difficult conditions for many dairy farmers.

On Monday farming unions met to develop an action plan calling for labels to indicate British products and long-term contracts for farmers.

Farmers have also been staging protests, including taking two cows into a supermarket in Staffordshire.

Representatives from Morrisons have met representatives from the UK’s four main farming unions - the National Farmers’ Union, NFU Cymru, NFU Scotland and the Ulster Farmers’ Union, along with lobby group Farmers for Action.

Morrisons corporate services director Martyn Jones said: "We will be launching a milk brand that allows customers to pay a little more if they want to support British farmers.

While many dairy farmers waited expectantly to discover the outcome of the meetings with supermarkets and NFU representatives regarding milk prices, many Ross farmers also expressed their concern at the low prices being paid for lamb and crops.

Mr RG Williams of the Ross Auction Centre told the Ross Gazette that this year had been the worst time for many farmers since the war.

He said:?“We know farmers like to moan, but this year they have got a genuine reason for it.”

He told the Gazette that there was a shortage of store cattle which is bought for fattening up but there had been an oversupply of lamb.

He said spring lamb started at £28 a head less this year than they were fetching last year. The strength of the £ against the euro also caused a problem for exporters as most British lamb is exported to France, Holland and Germany, as well as some of the smaller Mediterranean countries.

He said all farmers are suffering due to the price war within the supermarkets. There has been a vast increase in the amount of New Zealand lamb being imported which Mr Williams admits is of good quality. He added that it is doubtful if cereal farmers will cover their costs this year.

He said:?“Overall farming is in a very depressed state but this is not reflected in the Houskeeper’s purse.

Lower prices also means that the market is receiving less in commission.

Price cuts impact on the whole industry, he said, and he could see trouble ahead for farmers who had been encouraged to diversify as demand could suddenly drop.