CUMBRIA’S dairy farmers are being warned to prepare for tough times ahead and have a ‘Plan B’ in place as further milk price cuts are announced.

First Milk and Dairy Crest have already confirmed reductions to their farmgate milk prices as the Russian trade embargo continues to squeeze the market.

The Gazette reported last week that First Milk would cut the price for both its liquid and manufacturing pools by 3p a litre.

MORE TOP STORIES: And Dairy Crest has announced that it is reducing the price it pays to farmers by 1.75p per litre from October 1.

The Country Landowners’ Association’s north director of policy, Douglas Chalmers said: “This is a dramatic price cut, possibly the largest monthly drop in a decade, and will come as a major blow to dairy farmers.”

The group is urging its members to consider spreading res-ources in coming months to help weather the storm ahead.

“A small diversification project, supplying new markets or looking at alternative uses for parts of their land are examples of solutions that farmers might want to consider to soften the blow.

“The important point is that dairy farmers should have a ‘Plan B’ in place to help their business survive.”

Tenant Farmers’ Association chairman Stephen Wyrill said: “The majority of retailers and proces-sors appear to lack any strategy and although they pay lip service to the idea of working with the farming community, it is always the dairy farmer that ends up paying the price when markets soften. If retailers and processors are serious about wanting a joined up supply chain, they must be more willing to share the current pain rather than seek to maintain margins.”