"The minister told us that the HRK 0.42 grant is ruled out and that if we are dissatisfied with the signed agreement, we should start a legal fight for the (2009) memorandum on the purchase price of milk," Branko Zoric, a member of the national federation of milk farmers associations (HSUPM), told reporters after the two-hour meeting at the ministry.

The dairy farmers, organised by the HSUPM, have been protesting for 14 days now, unhappy with the purchase price of 2.30 kuna per kilogram of milk, proposed last month by Dukat, Croatia's biggest milk buyer.

The HSUPM on Thursday evening rejected an agreement between some of the milk producers and dairy companies to calculate the purchase price of milk based on an average price in five EU member states, according to which the purchase price would now be 2.43 kuna.

The HSUPM demands further negotiations with the relevant state institutions, saying that a minimum purchase price of 2.71 kuna is necessary for the survival of dairy farmers.

The HSUPM will decide what to do next, Zoric told reporters. The ongoing protest will continue and tractors will remain on roads, reporters were told at the HSUPM.

Addressing reporters, Jakovina said the ministry would take action on all matters within its remit, such as launching reforms to legalise unlawfully built farming facilities, defining a new law on farmland, finding a model in talks with the Croatian Bank for Reconstruction and Development (HBOR) to reschedule milk farmers' unfavourable loans, etc.

He reiterated that the government could no longer provide grants in the amount of 0.42 kuna per kilogram of milk and that the ministry could not order the dairy industry to abide by the 2009 memorandum under which the purchase price of milk was determined in line with the purchase price of milk in 25 EU member countries.

He repeated that milk farmers who were dissatisfied with the purchase price of milk should negotiate with the dairy industry.

Disgruntled milk farmers who had been waiting outside the ministry building for the outcome of today's meeting dispersed after they were addressed by HSUPM leaders.

They were joined today by representatives of the Croatian Defence War Fighters' Association, led by president Petar Janjic, who expressed support for the protesters.

There are around 14,500 milk farmers in Croatia who produce around 600 million litres of milk annually.