Mid Wales MP and farming union warn milk price was a threat to survival of dairy business

The claim was made to Montgomeryshire MP Glyn Davies by Jonathan Wilkinson, National Farmers Union Cymru county chairman, when they met to discuss the impact of devastating milk price cuts.

Mr Davies, a former dairy farmer, has pledged to raise farmers' fears in Westminster.

Farmers across Shropshire are being encouraged to have their say on the sector by attending the NFU West Midlands Dairy Conference, at Staffordshire County Showground on January 27, starting at 7.30pm.

It comes after dairy giant First Milk last week delayed its payments to suppliers in a bid to resolve its own financial troubles.

Mr Davies said: "There are many farmers who are having to sell their milk at a loss. This cannot continue."

He added: "I will be impressing on Westminster that the survival of First Milk is vital to the future of our dairy industry."

He said the problem was more than the price given for milk that was sold as milk.

"It is the milk that goes into value added dairy products such as butter and cheese. Farmers are being offered rock bottom prices, particularly if they don't have a contract."

The MP was told that depending on their milk buyer, and contracts, some producers will have seen up to 11p per litre knocked off their milk price in less than 12 months, more than a third.

Mr Wilkinson said: "The reality is that one retailer is now selling four pints of milk for just 75p. In the past 14 years the average retail milk price has never been that low.

"Farmers will be wary of the last time retail prices really plummeted when in the four months between June and October 2010 the average retail price for four pints fell from £1.51 to £1. Currently the average is holding at 113p.

"Farming didn't instigate this price war, yet we're seeing our dairy products on the front line and it's our dairy farming members who are the casualties."