FOLLOWING the summit meeting between Government ministers and farmers' leaders, Elizabeth Truss, Environment Secretary, issued a statement in which she recognised the seriousness of the current situation for the dairy industry and for farming as a whole.

She said: "Our hard-working farmers and the £100bn food and farming industry are vital for our economy and our countryside.

"A global surplus of milk is causing low prices around the world – well beyond the control of farmers. I want to see this situation taken seriously by the EU who have the means to help farmers manage this volatility and build resilience."

She would "emphasise" the need for a futures market and insurance for dairy products when she meets EU agriculture ministers next month.

"It is in everyone's interest that supermarkets, caterers and the food industry have a security of supply of milk," she said.

"As well as milk, more than 50 per cent of the UK dairy market is in products such as cheese and butter. Yet we have a dairy deficit as less than half the butter and cheese we eat is made from British milk.

"I want to see better branding and clearer labelling of dairy products in supermarkets, retailers and throughout the catering industry so that people know when they are buying British, and we have agreed to have further discussions with the food industry on this."