French dairy farmers and their larger customers have struck a deal over the price of milk, diffusing tensions in the highly volatile sector.
Under the terms of the agreement, the price of milk for the third quarter of the year will rise by around 10 per cent compared to the same period last year.
It was also agreed to put in place a mechanism for monitoring differences in competitiveness between the French and German markets.
At the end of 2009, French, Spanish and Belgian milk producers staged delivery boycotts, dumping millions of litres of milk after claiming that a drop in prices threatened their livelihoods. The protests were only suspended after EU farm ministers agreed to offer extra support for the sector.