The number of dairy farmers in England and Wales has halved in just over a decade, with 60 farmers giving up producing milk in December alone – a rate which will see fewer than 5,000 dairy farmers left by 2025, the NFU said on Monday.

NFU President Meurig Raymond, speaking at the Semex Conference in Glasgow (the dairy industry's first conference of 2015), sought to highlight the current situation with First Milk (which deferred payments to suppliers this month) and set out what he wants to see happen across the board to support dairy farmers at this crucial time.

Mr Raymond said, "I and the NFU dairy team met with First Milk the day after their announcement last Thursday. I told them that their time scales were unacceptable. I am also challenging them to get out and explain to their farmer suppliers what these changes are and explain how it will impact them. I know that First Milk have their AGM later this month, but the questions need answering now.

"The recent milk price cuts, from most processors, have had a massive impact with some farmers now facing their lowest milk price since 2007, at around 20p per litre. At the same time, farm costs remain some 36 per cent higher than they were eight years ago and the single largest cost component of a dairy farm, animal feed, is more than 50 per cent higher than 2007 levels. This combination has left many producers under extreme financial pressure and fearing for the future of their dairy businesses. You only have to look at the number of dairy farmers now leaving the sector."

Last week, the UN Food and Agriculture Organisation revealed that, worldwide, dairy prices had fallen to their lowest levels since 2009, driven by reduced imports into China and Russia in December.

In Glasgow, Mr Raymond continued, "For the NFU, it is important that we focus most on issues where we can make a difference. We cannot reverse world market trends. But I think there are definite areas where we where we can work to improve the situation for dairy farmers.

"We will continue our difficult but necessary discussions with all the processors as well as with retailers. What we want is an economically sustainable dairy industry for the future. As farmers face volatile markets, I’m also convinced that the government can do more to help by ensuring its policies are sympathetic to the current situation and will help farmers and farming businesses continue forwards."

Although NFU dairy board chair Rob Harrison added that the latest figures "Don’t come as a surprise" to dairy farmers, he said "I, like my colleagues on the NFU dairy board, are completely appalled by the ongoing price cuts crippling our industry and we are working hard to support our members and their businesses in every way we can."

Other farm groups, including the Landworkers' Alliance, which represents small farmers, have suggested there is a need for deeper reform. Expressing solidarity with protesting farmers led by Farmers for Action in October, LWA spokesperson Simon Failie said, "The UK has lost half of all its dairy farms since 2000 thanks to neo-liberal policies that benefit processors and supermarkets. We need a new Milk Marketing Board, or something like it, to stabilize milk prices at a level that gives dairy farmers a decent living."