WITNEY dairy farmer Tim Hook has backed calls by the National Farmers’ Union to end ongoing milk price reductions that the union claims threaten the industry’s financial sustainability.

Mr Hook, who is a third-generation farmer with 180 cows, said: “We are in the danger zone now. You will see dairy farmers go out of business.”

The NFU attacked the announcement by Arla Foods last week that it was lowering the price it paid farmers with the total price going down just over two pence to 24.81 pence a litre.

NFU president Meurig Raymond said: “This latest reduction will continue to place huge pressure on cash flows for these farmers in the months ahead.

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“Producer numbers have dipped under 10,000 with 60 going out of business in November alone. We will continue to put pressure on the Government, retailers and the processors with the aim of trying to rebuild an economically sustainable dairy industry.”

Arla Foods is a global dairy co-operative owned by 13,500 dairy farmers, about 3,000 of whom are in the UK.

Ash Amirahmadi, Arla’s UK head of milk and member services, said: “Global supply and demand are still out of balance, which is continuing to create downward pressure.”

Mr Hook said he would “like to see the price get back to 30 pence,” which it was in mid-2014.

He said: “The supermarkets seem to be driving the price down. They seem to be using milk as a loss leader.”

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