Milk price misery is plunging to new depths for Cumbria’s already struggling dairy producers, it has been claimed.

Fresh milk price cuts have already cast a shadow over 2016 and, with no end in sight to the slump, a Kirkoswald dairy farmer claims pressure is being stepped up on the county’s producers to further slash production.

Les Armstrong’s forecast comes on the back of an announcement by the country’s largest independent dairy that it intendsmaking major changes to its milk pricing schedule.

Meadow Foods has written to its Cumbrian suppliers, saying that, among other changes from April 1, it will reduce by 20 per cent the volume of milk paid for at its “A” price.

Currently, several milk buyers, including Meadow Foods and First Milk, owner of Lake District Creamery at Aspatria, operate an A and B pricing policy, with the latter paid according to the market price on the day the milk is picked up from the farm.

“The Cumbrian dairy industry is virtually being driven to its knees. The problems facing farmers is much worse now. Where do we go from here, how do we plan for the future?,” said Mr Armstrong.

First Milk, who has more than 250 Cumbrian dairy farmers on its books, slashed its milk price by 0.25p/litre on January 1, and Mr Armstrong, who farms at Blunderfield, says this has led to some producers trying to make a living on 13ppl.

“We have also heard that some producers in Cumbria have had their contracts terminated leaving them at the mercy of the ‘spot’ market,” added Mr Armstrong.

Meadow Foods introduced their A and B milk pricing system in April last year, and said that it would keep the move to 80 per cent under review until March 2016.

“It can only be revised up, not down,” according to the company’s milk procurement director Jim Bebb. “The 80 per cent might be 90 per cent.”

The company announced the move in a letter sent to the 550-plus farmers supplying its three processing sites in Cheshire, Yorkshire and Peterborough.

The letter said: “The changes to the balance of A and B litres will make your overall milk price more responsible to market conditions, so as and when the market recovers producers will see the benefits directly.”

The company is also increasing the amount it pays to those who accurately forecast their production to within plus or minus ten per cent, paying them 0.5ppl for this instead of 0.25 ppl. However, the flat rate they are paid for their milk would reduce accordingly said the company.

“This has massive implications for Cumbrian dairy producers, and we need to ask what the future looks like for the Cumbrian dairy industry of our local MPs,” said Mr Armstrong.

Angry National Farmers’ Union officials are questioning Meadow Foods’ move as the dairy announces strong profits from last year while paying, they claim, one of the lowest milk prices in mainland UK.

They claim the dairy is second from bottom, paying 19.29ppl to its suppliers.

NFU dairy board chairman Rob Harrison said: “It’s morally wrong that a dairy posting pre-tax profits of £13.7 million in a difficult market situation continues to pay an unsustainable price for milk, and takes no consideration of the voluntary code of conduct on contracts, and has no formal producer representation.

“Writing to farmers before the New Year to let them know of major changes to their milk pricing schedule from April with no prior discussion and consultation is unacceptable.”