FARMERS' leaders have announced plans to set up dairy co-ops to fight on a united front for fairer prices for milk.

Dairy Farmers Together was launched by the National Farmers Union Scotland yesterday at a rally in Lanark Agricultural Centre and will be given £100,000 by the Scottish Government to help individual farmers join co-ops to strengthen their negotiating position for the price paid to dairies per litre.

A planned 2p price cut sparked concerted action by the UK's Dairy Coalition – which includes NFUS, NFU England and Wales, NFU Cymru and Farmers For Action – at processors and supermarkets across the country.

Farmers, more than 500 of whom attended yesterday's rally, said it generated a huge wave of consumer support.

Yesterday, NFUS said Dairy Farmers Together would enable groups to maximise any benefits that a new voluntary code of conduct, to be negotiated in August, would deliver.

Rory Christie, NFUS milk committee vice-chairman, said: "The past two weeks of action must galvanise producers into working together to strengthen their hand in the supply chain.

"Part of the long-term solution lies in better collaboration between farmers themselves if we are to avoid being back manning the barricades in the future. Having Scottish Government support to examine all options is a tremendous boost to taking this sector forward.

"We need a definitive long-term outcome, not a series of short-term wins. We need to change the whole dairy industry, not just a single part, so that we don't have to keep fighting outside processors or retailers depots every time they decide to steal a bit of our livelihood.

"I am sure we can make a difference and drive change through a collaborative organisation that brings together all dairy farmers. The presence of English, Welsh and Northern Irish farmers here today suggests the appetite for change is across the UK.

"Dairy Farmers Together can be an umbrella organisation that adds to the strength of the whole."

Last week suppliers such as Robert Wiseman, First Milk and Dairy Crest reversed their proposed price cuts to farmers thanks to a series of high-profile protests at processing plants and supermarkets.

Robert Wiseman Dairies was to cut the price it pays per litre by 2p, as of tomorrow, blaming a collapse in the value of cream. However, it said last week it would hold prices at 26.43p per litre for farmers on its standard contract next month.

Some farmers, however, still want a previous 2p cut that came into force in June reversed and warned protests such as those seen in Dumfries, Glasgow and East Kilbride over the past week would continue.

Rural Affairs Secretary Richard Lochhead addressed the meeting and said: "It's ludicrous our dairy farmers are paid less than the cost of production for each and every pint of milk. I congratulate Scottish farmers for the dignified way in which they have carried out the campaign to highlight this untenable situation, which has captured the public's imagination. I fully support these efforts and believe the plans for collaboration can help underpin meaningful change."