Entremont-Alliance, one of France's largest dairy processors, has reached an agreement with its supplier farmers that will settle the pricing dispute that has disrupted the company's milk supplies in Western France.

Entremont had offered a price increase of EUR30.10 (US$44.44) per 1,000 litres of milk. However, after farmers blockaded its distribution depots throughout the west of France, Entremont today (28 August) agreed to the farmers demand for an increase of EUR49 for the period from July to September, in line with other dairy processors.

The farmers and Entremont have also agreed to work towards the development of a new, more reactive, pricing system to fill the vacuumed left by the government's deregulation of milk pricing.

"We are very happy with the settlement," a spokesperson for the FRSEA union representing the  farmers told just-food this afternoon. "In the short term we are pleased with the price increase and in the longer term we see that it is very important to set up a system that will allow milk suppliers and processors to negotiate the price of milk."