THE number of dairy farmers in England and Wales has halved since 2002 with 60 giving up milk production in December alone.

Meurig Raymond, NFU president, said that at the current rate today's 9,960 milk producers could fall to below 5,000 by 2025.

Addressing the 25th Semex Conference in Glasgow today (Jan 12), he highlighted the current situation with First Milk and set out what he wants to see happen to support dairy farmers at this crucial time.

He and the NFU dairy team met First Milk last week, the day after the co-operative announced it was delaying payment of its January 12th milk cheque to farmers by two weeks, and all future payments by two weeks, to help fight cash flow problems and give it a stronger base.

It also said it was reversing 1.1ppl of its planned February price cut for its liquid and manufacturing pools – which will still see them fall to 21.2ppl and 21.57ppl respectively – but increasing its members capital investment from 05p to 2ppl for milk supplied from December 2014 to August 2015, and increasing its members capital investment target from 5p to 7ppl.

“I told them that their time scales were unacceptable," Mr Raymond told the conference. "I am also challenging them to get out and explain to their farmer suppliers what these changes are and explain how it will impact them. I know that First Milk have their AGM later this month, but the questions need answering now. "

Recent milk price cuts by most processors were having a massive impact, with some farmers now facing their lowest milk price since 2007, at around 20p per litre.

" At the same time, farm costs remain some 36 per cent higher than they were eight years ago and the single largest cost component of a dairy farm, animal feed, is more than 50 per cent higher than 2007 levels," said Mr Raymond.

"This combination has left many producers under extreme financial pressure and fearing for the future of their dairy businesses. You only have to look at the number of dairy farmers now leaving the sector."

Rob Harrison, NFU dairy board chairman, said: “Being a dairy farmer at the moment is like being a boxer – on the ropes and taking body blow after body blow – there’s only so much you can take before throwing in the towel.

"I, like my colleagues on the NFU dairy board, are completely appalled by the ongoing price cuts crippling our industry and we are working hard to support our members and their businesses in every way we can."

Consumers could help by buying British milk, cheese, yoghurt and butter. "If you can’t find it easily on shelves let the NFU know and ask for it from your retailer," he said. "Looking out for the Red Tractor is the easiest way to ensure you are buying food that can be traced back to the farms on which it was produced."

Ian Macalpine, chairman of The Royal Association of British Dairy Farmers called on First Milk to be honest with members.

"They need to be informed of the absolute truth, in particular about the use of their increased capital contributions from the current 0.5ppl to 2ppl," he said, "First Milk’s member businesses are being put under enormous stress with crucial decision making with banks and suppliers, both for the short and long term.

"They need accurate information in order to make these decisions; they also need to be reassured that they will continue to have a milk buyer. We urge all First Milk members to attend their delayed agm on January 30."