A REPORT published by the farmers’ trade association, the NFU, has revealed that dairy farmers face a £330million deficit as the cost of production outstrips milk prices.

It also confirms that British dairy farmers are losing more than 3p on every litre of milk. With 11 billion litres of milk produced across the country every year, farmers are struggling to make a living.

In a recent Gazette article, Overton dairy farmer James Crosbie Dawson expressed how he was on the verge of quitting due to the low prices of milk.

NFU dairy board chairman, Mansel Raymond said: “If dairy farmers had received their fair share of available market returns in 2010, we wouldn’t be faced with such a staggering gap between the price we are paid for our milk and the cost of producing it.”

One of the biggest factors contributing to the increase costs of milk production is the rise in prices of bedding and feed.

The report shows that bedding costs rose by 13.8 per cent over the past year, while the cost of feed is expected to rise by 16.6 per cent higher than in 2009/10.

Mr Raymond added: “It is true that prices have started to move up but some milk buyers have told their farmers to expect only a penny increase. I’m seriously worried that for many dairy farmers it could be too little, too late.”