Fluctuating exchange rates are being labelled a key factor behind the UK's volatile milk prices in a new report from Express Dairies which calls upon the government to stabilise the system.
The report, by independent analyst Dr Clive Black and Express Dairies chief executive Neil Davidson, describes the UK as unique in Europe in its exposure to currency fluctuation.
Davidson said changes between the euro and the pound failed to provide a meaningful intervention price, as a shift in the exchange rates could mean the floor price was either too high or too low.
"At the moment it's a case of how lucky do you feel on the exchange rate', and that's how producers are having to plan their businesses." He said the solution was either to join the euro or negotiate a separate sterling floor price.
Davidson called upon everyone in the industry to lobby the government for action.