Britain’s farmers are seeing a boom in business despite the economic storm, new figures showed today.

Farming chiefs in Shropshire and Mid Wales have hit out at a dairy firm’s decision to cut by two pence a litre the amount farmers are paid for milk – saying they are now selling it for less than it costs to produce.

Up to 40 dairy farms from across the Midlands have been plunged into crisis after a major milk buyer and processor went bust, owing them thousands of pounds each.

Union officials today said they were confident the proposed £280 million sale of Britain’s biggest fresh milk supplier to dairy giant Muller would not lead to job losses.

Plans by Shropshire-based dairy giants Muller to cut the price it pays farmers for milk have been slammed by Shrewsbury’s MP Daniel Kawczynski.

Dairy giant Müller is set to cut the price it pays farmers for milk.

Dairy farmers could be given the power to negotiate better contracts with milk buyers under plans backed by MEPs on the European Parliament’s agriculture committee.