'We must fight or lose the dairy industry'

"We must be positive going forward, but don't for a minute believe we're in a scenario where we can sit and wait. If we don't stand up and fight for the industry, we will lose it," said David Handley, chairman of Farmers for Action, at the Semex conference in Glasgow.

"Without a substantial improvement in the price of milk - I'll need to come up with an exit strategy."

Handley's speech comes as the number of dairy farmers in England and Wales halved in just over a decade.

60 farmers gave up producing milk in December alone, a rate which will see fewer than 5,000 dairy farmers left by 2025, the NFU said.

NFU President Meurig Raymond also addressed the Semex Conference, he said the recent milk price cuts have had a massive impact, with some farmers now facing their lowest prices since 2007.

"This has left many producers under extreme financial pressure and fearing for the future of their dairy businesses."

Raymond said milk has now fallen below the price of bottled water as many producers relay solely on subsidies from the European Common Agricultural Policy.

Environment Secretary Elizabeth Truss also talked about the plight of the dairy industry in her speech at the Oxford Farming Conference. She sad the industry will continue to face global market difficulties in the coming months.

"We are working very closely with the NFU and I have met Dairy UK about how to help farmers manage this situation. At the Dairy Supply Chain Forum in November, George Eustice agreed a set of actions that will ensure we do all we can to help this industry.

"This means doing things like making sure dairy farmers receive full support from the £141 million Countryside Productivity Scheme under the Rural Development Programme, which is targeted specifically at helping farm businesses become more competitive.

"We are also encouraging the use of longer contracts with buyers to give farmers added security.

"The Rural Payments Agency is ready to take applications from new organisations for formal recognition, so dairy farmers can come together in producer organisations to give them a stronger bargaining position."

The number of dairy farmers in England and Wales dropped below 10,000 'and we can't afford to lose any more', said NFU dairy board chairman Rob Harrison.

Reflecting on the past 12 months for the industry, Mr Harrison said the frustration demonstrated in recent months was justified with dairy producers struggling to make ends meet.

“I am as angry and disappointed with the recent milk price cuts as everyone else here – it’s been a real kick in the teeth. Things are bad and we’re all going through some tough times. For the first time this month we have dropped below 10,000 dairy farmers in England and Wales and we can’t afford to lose too many more. I also know a number of farmers are on notice for next spring and I am in touch with all the main milk buyers to make it clear what is acceptable and what isn’t when it comes to contracts,” he said.