The National Farmers' Union is calling for a meeting of leading dairy processors and milk co-operatives to discuss the "unsustainable farmgate prices".
NFU president Ben Gill has attacked milk processors for failing to pass any of their margin down the supply chain to farmers.
Gill said: "The NFU has consistently said that processors must make a contribution to improving farmgate prices.
"Retailers have provided improved returns to farmers by increasing the price paid to processors for both fresh milk, cheese and butter.
"Yet the sector most responsible for driving the farmgate price down, the processors, must realise the industry is facing a crisis and there must be a fairer distribution of margins."
The meeting, expected to take place within the next two weeks, is part of an ongoing campaign by the NFU to deliver a better return for dairy farmers.
NFU milk committee vice-chairman Mansel Raymond said: "Processors must realise the price they pay to dairy farmers must be above the cost of production to enable farmers to reinvest in their business.
"For most farmers this is not the case, and the prospects for maintaining the current size of the dairy industry are bleak."

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