Farmers have warned that thousands of them will be put out of business because many are paid less for their milk than it costs to produce it. While the cost of production is around 29 or 30 pence a litre, some are paid as little as 25 pence a litre for it.
For some farmers the production cost is 29 or 30 p.
For others it\’s 28p, 27p, there are reports that for some megafarms it is 14p.
And yes, as some in the industry reduce their costs then the marginal, highest price, producer is to go out of business. That\’s what\’s supposed to happen.