An immediate increase in farmer returns is needed following rising world dairy prices, the Royal Association of British Dairy Farmers has claimed.

The call follows pre-tax profit increases of 59.9% and 5% posted by Wiseman and Dairy Crest respectively last month, said RABDF chairman David Cotton. "If prices don't improve soon, questions will be asked over whether processors want to retain the suppliers that remain."

The cost of production was still rising and farmers needed their milk price to do the same, he added.