UK &#8211, Milk production has declined at a rate of more than 7% in recent weeks due to poor quality forage and the continuing exodus of producers from the industry, according to the National Farmers’ Union (NFU). And this figure looks set to rise despite recent price increases of 2p (0.03 euro) per litre of milk.

NFU chairman Terrig Morgan said: “The increased prices we have seen so far will certainly not put the majority of producers back in profit, let alone allow them to reinvest for the future. Producers need a bare minimum of 21p [0.35 euro] per litre to cover costs and, in my view, at least 24p [0.40 euro] per litre to ensure a viable sustainable industry.” Morgan believes that with the continuing shortage of milk and buoyant market conditions further price increases are justified. “The market conditions are now ripe and it is about time that producers received the full benefits,” he added.

UK farmers currently receive about 0.30 euro per litre.