A report published by the NFU says that the gap between the price paid for milk and the costs of producing it is a staggering £330 million.
The Cost of Milk Production report reveals that British dairy farmers are, on average, losing more than 3p on every litre of milk they produce. With 11 billion litres of milk produced annually on diary farms across the country this equates to £330m between production costs and the price received by the farmers.
The report illustrates that the biggest factor adding pressure to an already struggling sector is the huge increase in feed and bedding costs.
Mansel Raymond, NFU dairy board chairman, said: "These stark figures reveal the very desperate situation on many dairy farms amd wpm't be a surprise to the many farmers out there who are trying to make a living. The irony is that if dairy farmers had recieved their fair shareof available market returns this year, we wouldn't be faced with such a staggering gap between the price we're paid for our milk and the cost of producing it."