IT HAS been billed as the worst crisis ever faced by dairy farmers.

The relentless decline in milk prices over recent months has stunned an industry which was just having its confidence restored.

Since the early 1990s, the number of dairy farms has declined in the UK from around 30,000 to less than 10,000 - and that decline looks set to continue inexorably.

Although it is right to blame supermarkets, which have both the power and incentive to drive down prices, milk is ultimately a commodity and commodity prices rise and fall at the whim of markets.

The 'perfect storm' the dairy industry has experienced over recent months, thanks largely to international factors, would have been very difficult to predict. And it has perhaps come as more of a shock because milk producers were just beginning to see a chance to make a decent living after the years of decline. Although, the fall in the number of dairy farms was never going to stop, those who chose to stay in the industry were beginning to feel the confidence to invest in new equipment and efficiencies.

They were not making big margins, but because the farming instinct is to plough as much as possible back into the business, they were happy to make the commitment. There started to be new hope for the future.

Those who chose to employ larger economies of scale through larger herds and more efficient hi-tech means of production could never have imagined taking such a gamble only to end up with their hopes and aspirations dashed.

It was bad enough seeing milk prices falling month after month because the world is awash with the product, but for many to also have their cash-flow disrupted by First Milk's decision to delay payments must feel like a slap in the face from a friend.

For a farmers' co-operative to take such a step is unprecedented step. It is yet another illustration of how dire the dairy industry is right now.