DAIRY farmers face being forced out of the business unless action is taken by government to increase the amount they are paid.

A report, produced by MPs, said the industry is facing numerous problems that need to be dealt with.

The group Farmers for Action has said 60 farmers a month are having to close with many facing huge financial pressure.

A key problem is the competition between supermarkets which is forcing the price down, meaning farmers are not being paid what it costs to produce the milk.

Some have to take drastic measures to make sure they are sustainable in the long-term.

Nick Gosling, a third generation dairy farmer at Berkeley Farm, in Wroughton, recently tried to sell a section of land for housing but it was rejected following strong local opposition. He believes there needs to be a change in attitude if the problem is to be solved.

He said: “It’s very sad that some of the big supermarkets have been able to force milk prices down so far that many farmers are making a loss on every pint they produce.

“But I feel quite strongly that if we really want to buy good quality British milk, we have to do two things. We must be willing to pay a reasonable price per pint - and that’s probably going to be higher than the cost of a pint of water - and we also need to make it possible for farmers to invest in their own farms. Investment is crucial, to keep production efficient and modern, to safeguard jobs, and to enable farming to continue from generation to generation.

“We were very disappointed recently when our plans to sell a small proportion of our land for housing in the village were turned down.

“The capital that sale would realise would be reinvested in the farm, and ensure that organic dairy products are available to local people at a realistic price for the long term future.

“If we want organic farms to be able to continue, we all need to be realistic about the commercial needs of such farms as well.’’ Farmers for Action recently held a series of protests to try and force the supermarkets into paying what it says is a fair amount per pint.

In November its members blockaded the entrance to the Iceland DHL distribution centre in Swindon.

James Hole, of the group, said: “The issue we have is that many of the supermarkets are selling milk as a loss leader to get people into the store.

“This means farmers don’t get anywhere near the amount it costs to produce the milk.

“There are just under 10,000 dairy farmers in the UK but this could be halved with five years which is setting off alarm bells.

“This will then have an impact on all the other industries which rely on dairy farming, such as auctioneers and land agents.”

A Government spokesman said: “We understand the concerns of British farmers over the current pressures on milk prices caused by the volatility of the global market and we are doing all we can to help manage this.”