A DORCHESTER dairy farmer believes the milk price crash will get worse before it gets better.

Simon Banfield, who farms 190 hectares and 170 cows at Admiston farm, spoke out after farmers were warned of tough times ahead.

Mr Banfield’s milk price has dropped from 35 pence per litre to 28 pence per litre in the past six months. He believes the price of milk has exceeded the demand.

Mr Banfield said: “They (prices) could continue falling for another year and take another two years to climb again.

“There are an awful lot of people who won’t be able to pay their bills.

“For an important dairy county like Dorset, it’s a big problem.”

Mr Banfield is a member of farming co-operative scheme Arla, and he predicted the situation would get extremely serious for every dairy farmer in the UK.

He added: “People are ringing up concerned and ask me what I think and I tell them the truth.

“It’s a shock to see how fast it has changed. It’s happening all over the world.

“All dairy farmers had very, very good years last year. The crash has really happened since early summer.”

According to the National Farmers’ Union, the average milk price equivalent has decreased almost 10 per cent since August to 23.5 pence per litre.

Mark Oliver, chairman of the NFU’s South West regional daily board, said the NFU would be doing whatever it could to help farmers.

Mr Oliver said: “As the latest round of price drops starts to hit our businesses, with the promise of more to come, once again many farmers are being expected to sell milk below the cost of production.

“Even after reducing costs, cash flows for the coming 12 months are not looking healthy.

“Of course, the NFU will be working to do whatever it can to make this slump as shallow and as short-lived as possible.

“Many of the factors currently affecting prices are of a global nature, but in the areas that we can affect – including campaigning on behalf of British dairy products and holding retailers to account – you can be sure we will do whatever we can to make a difference.

“I want to see a growing and profitable dairy sector in this country but I know that is going to be difficult to achieve if market volatility keeps pulling the rug out from under our feet just as the future starts to look brighter.”