UK dairy farming is “on the brink of collapse” and a new formula to calculate a consistently fair price for milk should be introduced, according to Peter Humphreys, CEO of First Milk.

His warning follow a report by the dairy company which found UK dairy farmers lose an average of 4.7p on every pint of milk they produce, giving the average dairy farm an annual loss of £37,600.

“For many dairy farmers, we are at a pivotal moment,” Humphreys told the Daily Telegraph. “While the price paid for their milk has risen significantly, further cost rises are inevitable and extensive investment is needed.”