Dairy Crest has said it is "on track" to up the price it pays farmers for milk after postponing plans to cut prices amid the fierce protests this summer.

The UK dairy processor, which owns brands including Cathedral City cheese and Country Life butter, said "improving" milk and cream markets meant it was "confident" of raising prices this autumn.

In July, Dairy Crest shelved plans for a cut on 1 August and said it has since had talks with farmers to look at ways to up prices.

The company said it had asked for "cost price increases" from its own customers and would "reflect" the hikes in the farmgate price it pays. Higher commodity cream prices will also have an impact.

A meeting with its farmers will be held later this month. Dairy Crest expects to announce a price increase after the discussions.

Milk procurment director Mike Sheldon said: "We are in no doubt about the difficulties our non-aligned farmers have been facing and are confident that all our customers are now also aware of these difficulties and many are prepared to pay more for their milk as a result."

Farmers blockaded processing and retail distribution sites this summer after planned price cuts across the sector were announced. The protests largely succeeded in stopping the cuts. 

Earlier this month, UK dairy processors and farmers formally agreed a deal on a code of practice to govern relations in the sector. Final implementation of the voluntary code of practice is subject to legal approval.