Dairy farmers should include the value of family labour in their accounts when they are calculating the true cost of milk production, it has been claimed.
The Royal Association of British Dairy Farmers said a new study had discovered the average cost of family labour on farms was 3.19ppl.
RABDF chairman Tim Brigstocke said: “We were concerned about statements saying producers could make a profit and have sufficient cash to reinvest at a milk price as low as 16p per litre.
“The association found that the crucial value of labour had not been recorded, therefore farmers were subsidising the real cost of production.”