A RESOLUTION may be at hand in the stalemate between dairy farmers and the processing industry.

The long-running dispute between the farmers and dairy processing giants such as Dairy Crest has been over farmers’ demand for a two pence per litre increase in the farmgate price for milk.

As Britain’s biggest dairy processing company, Dairy Crest has been the main target in a campaign of blockades and protests being waged by the farmers.

But the company’s best offer so far of a 1.4ppl increase on the price of milk for cheese production has failed to pacify the protesters and Dairy Crest plants up and down the country were blockaded again this week.

That latest offer deepened anger among farmers - coinciding as it did with the publication of Dairy Crest’s financial figures showing the firm’s pre-tax profits had increased 12 per cent to over £35.4 million for the first six months of 2003.

At the time, the company warned: “There is no way this increase can remain on the table nor will it be bettered.” But Dairy Crest bosses were due to meet representatives from the major milk co-ops this week.

Tebay farmer Steve Dunning is Cumbria NFU county chairman and also the farmers’ representative on the Northern Board of the First Milk co-operative.

He said that, with the processors coming under increasing pressure from supermarkets to a pass on some of their profits to farmers, and an increase in direct action by farmers, he was “cautiously optimistic – very cautiously” that the latest talks could end the stalemate in the next few days.

“Quite how long they can hold out against us, I don’t know. There was a hell of a turnout at demonstrations last week – there are more and more farmers getting more and more angry. £35.4 million - that’s not too bad is it? The publication of those figures just made people more angry,” said Mr Dunning.

“We know there is 2p in the market place since the pound and the Euro stabilised. They (the processors) are getting a better return through retailers but we haven’t benefited as they have not passed it on to to us as farmers. They have kept it to themselves.”