Farmers attempting to regain control of the UK's biggest dairy company, in anger at low milk prices, claim they have won financial backing for their cause.

Pressure group Farmers For Action (FFA) has called on dairy herders to support attempts to seize back control of Dairy Crest, a former agricultural co-operative which was floated in 1996.

And FFA chairman David Handley said that the group had received financial support for the buy-out, which would require an estimated �275m in backing, and which one industry insider described to BBC News Online as "ambitious".

"We are not about throwing out spoofs to people," Mr Handley told BBC Radio 4's Today programme.

"[The buyout] is physically possible."

Mr Handley also revealed plans to install a business team at the head of Dairy Crest, and refocus the firm such that the agriculture industry would control milk supply "from the back end of the animal right the way through to the supermarket shelf".

Potential backer?

While the names of FFA's backers have yet to be revealed, insurance firm NFU Mutual, which was earlier linked to the buyout, is not thought to be involved.

The insurer confirmed it had held exploratory talks with FFA a year ago, but said it had not seen any business plan for a Dairy Crest buyout.

"We offer advice and help to all sorts of groups," a spokesman for the firm told BBC News Online.

NFU Mutual is interested in making investments which make a good return for policyholders, but is not "a venture capital organisation nor a merchant bank", the spokesman added.

Farmers 'crucified'

Farmers still control about 35% of Dairy Crest, which owns brands including Cathedral City cheese, Yoplait yoghurt and Clover butter, besides operating doorstep deliveries.

But FFA members have become increasingly concerned at milk farmers' diminishing returns.

"Dairy Crest have crucified dairy farmers over the last 12-18 months, and that cannot be allowed to continue," Mr Handley said.

"There is a supply chain here, and there is no reason why each party in that chain should not get a fair return.

"Dairy Crest obviously do not see that is the case."

The firm is only dairy giant not to pass back increased cash returns from retail buyers such as supermarkets, he claimed.

'Understand difficulties'

The firm, however, is believed last October to have paid farmers an extra 2p per litre for milk, and 1.5p more in April, taking the total price to 19.5p a litre.

"We fully understand the difficulties encountered by dairy farmers and are actively seeking to build a secure future for the dairy industry," chairman Simon Oliver said last month, as Dairy Crest unveiled underlying profits up 29% to �57m for the year to the end of March.

"We are enjoying an increasingly positive dialogue with those milk producer representatives who share our view that discussion and co-operation is the way ahead."

But a farmer told BBC News Online: "The trouble is that, with the way things are organised now, farmers are just a lot of small voices, whereas Dairy Crest, as a large buyer, is able to exert a lot of muscle.

"A farmer's milk has to be collected that day. How much bargaining power has he got?"

City latest

In the City, Dairy Crest shares closed 3.5p higher at 360.5p on Tuesday.

The shares, which fell below 135p in March 2000, have been among the best performers on the London Stock Exchange in recent months.