Robert Wiseman Dairies has backed down on plans to cut the wholesale price of milk following protests by farmers.
The East Kilbride-based company had planned to reduce prices by 1.7p per litre from August 1, blaming the move on a collapse in the value of cream.
However today it announced that it will hold prices at 26.43p per litre on its standard contract next month.
Hundreds of farmers staged demonstrations outside two Robert Wiseman dairies and a depot yesterday in protest over the planned milk price cuts.
Farmers For Action (FFA) claimed they had shut Robert Wiseman dairies in Bellshill, in North Lanarkshire, East Kilbride and a depot in Cambuslang, both in South Lanarkshire on Thursday night.
It followed a week of blockades by farmers, who are calling for all price cuts to be reversed amid warnings the plans will force many out of business.
In a statement confirming that it will hold the milk price next month, Robert Wiseman Dairies said: "The decision takes account of concerns raised since we announced a 1.7ppl reduction in our ex-farm price from 1 August 2012.
"This followed the significant loss of income we suffered further to the substantial decline in cream values experienced since the beginning of the year which left us unable to sustain the milk price we were paying.
"The announcement of the reduction though coincided with a period of adverse weather conditions and rising feed costs for dairy farmers which we recognise has caused difficulties for farmers.
"We have been engaging with our customers with regards to the exceptional circumstances facing the supply chain and the need for urgent and significant support. From our discussions to date, we are confident this support will now be demonstrated."
The protests began at around 6.30pm last night and were due to continue until midnight.
It is understood that work continued inside the dairies during the protest, though vehicles were not able to move in and out.
Farmers For Action spokesman John Cumming said: "We're quite glad that we've got a bit of stability in the market place. It is a move in the right direction.
"But the price of milk will still have to go up because the price we're being paid is well below the cost of production.
"In order for the dairy industry to survive the cost of milk is going to have to match the cost of production."
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