Milk price cut 'unsustainable' for farmers, union warns

NFU Cymru said the current milk prices could mean farms 'disappear' from parts of Wales

A cut to the price of milk may make production unsustainable for many Welsh farmers, a union has warned.

First Milk, one of the UK's largest dairy farmer co-operatives, announced in June many farmers would be paid 1p less per litre from the start of July.

National Farmers Union (NFU) Cymru say the move is a "nightmare" for farmers, leaving prices below the cost of production in many instances.

First Milk said it had to "factor in" lower commodity prices.

Last Wednesday, Paisley-based First Milk announced the cut alongside news that its chairman, Sir Jim Paice, would stand down. It also confirmed a loss of about £22m for 2014-2015.

Sir Jim said commodity markets were continuing to decline and, despite his "regret", this had to be reflected in lower milk prices.

NFU Cymru chairman Stephen James said the price per litre for some had dipped from to 32p a year ago to 16.6p this month.

He said: "It's a bit of a nightmare for us in the milk industry at the moment.

"We're down to half and it's not sustainable, we can't manage at that sort of price.

"First Milk have to get their act together and get this price up from here sooner rather than later."