Scottish dairy farmers quit the industry as milk prices dive.

As supermarket wars in Scotland continue to eat into farmers' returns, new data has revealed that Scottish dairy farmers are quitting the industry in droves.

38 farmers have been forced to sell up in the first half of 2010 compared to 41 in the whole of 2009, according to figures from the Scottish Dairy Cattle Association. 

NFU Scotland Vice President, Allan Bowie, said supermarkets had spent the past two weeks cutting the price of low-fat varieties and singled out ASDA for slashing its milk price.

Milk prices have held fairly strong since 2006, growing at 0.8%pa, but the discount retailers' market share has roughly doubled over that time, stimulating price wards with the major UK supermarkets.

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