A group of 25 farmers has set up an organisation that plans to invoice milk buyers if they do not agree to a 4ppl increase by 1 December. Called Dairy Farmers of Scotland, they have set themselves the target of recruiting 80% of Scotland's 1,170 dairy farmers this month.
"The situation is coming to a head because of increases in costs this year," said Dumfries and Galloway farmer John Howard.
The present return on capital of 0.75% was not enough to reinvest and keep going, he added. The farmers are taking legal advice and say they will go to court if need be. Howard also says he'd be happy to speak to the Competition Commission about the matter.
First Milk, which buys the majority of Scotland's milk, said: "We understand the position that this group is coming from, but the confrontational tactics they are using have been tried before and have failed."