A MILK co-operative that sent a letter to customers saying prices were going up to help dairy farmers has been criticised.

Farmers say they are not getting any more for their milk from Dairy Farmers of Britain, and the letter is misleading. But the co-operative says that a price increase is on its way.

The letter was sent to businesses making doorstep deliveries and states that Dairy Farmers of Britain will be increasing the price of all grades of milk by 12 pence per gallon.

It goes on to say that because the cost of fuel, fertiliser and utilities has risen, the financial position for many dairy farmers is unsustainable.

"Unfortunately we have to pass these costs onto you, our customer, to enable a sustainable milk price to be returned to our supplying farmers," it continues.

But dairy farmer Edgar Chapman, from Kirby Sigston, near Northallerton, said it was the first they had heard of any price rise. At present, he is receiving 16.8 pence per litre for his milk.

"We have no knowledge that there is a price increase on the way so it is misleading sending out this letter to the customers," he said.

"They are making out as though the farmers are getting the money and we haven't seen any of it yet. Promises don't pay the bills."

A spokeswoman for Dairy Farmers of Britain said they were still in negotiations about a planned price increase. She said: "It is all very much up in the air but we are hoping it will be soon.

"Basically we are just waiting for the money to filter through."