GRASSINGTON-based Dales Dairies has entered a partnership agreement with Fodder, the award-winning shop and café at the Great Yorkshire Showground at Harrogate.

The move will see farmers paid 32p per litre for milk purchased by Fodder.

Both Dales Dairies - which sells milk from its own farm and 20 others in the area - and Fodder are concerned at the difficulties experienced by dairy farmers and are happy to pay an increased price for the milk they buy.

Heather Parry, Fodder's managing director, said: “Fodder wants to do what it can to help these 21 dairy farms. The benefit of truly fresh, local milk, should not be under estimated - nutritionally, environmentally and economically.

“The recent over-production of milk on the world market has meant that the price farmers receive has plummeted. Thus the number of UK dairy farms has fallen below the 10,000 mark for the first time, as farmers struggle to make a profit.

“If we want the British dairy farms to survive, it’s vital that farmers are paid a sustainable price for their milk and so we are taking this unique step to make a stand on their behalf. We hope that other like-minded retailers will do the same and we also hope customers ‘vote with their feet’ and buy milk that supports our hard working dairy farmers.

"We know our own customers recognise the value of fresh local milk and we will continue to sell it at the same price happy that we are both supporting the farmers with payments substantially above the current average, whilst offering customers a great product at a fair price.”

Dales Dairies’ managing director David Oversby, who is also a dairy farmer, has applauded the move.

He said: “Fodder is the first retailer who has actively said it wants to pay farmers more. We are very happy to support this initiative and I am more than happy to match the commitment that Fodder has made to our farmers.”

Mark Smith of Rookery Farm, Winterburn, supplies Dales Dairies and will directly benefit from the announcement.

He said: “It’s great that we have a retailer in Fodder who is both supportive and responsible in their purchasing. I really hope that others will follow Fodder’s lead as we all need to make a living wage”.

The Fodder shop and cafe is part of the Yorkshire Agricultural Society's work in supporting the agricultural industry. It was established in 2009 to provide a market for local producers as well as giving customers the option of shopping locally and ethically. It currently supports more than 300 farmers and small producers.