A RAGLAN farmer is spearheading the campaign against the price they are paid for milk.

David Handley, who owns a dairy farm in Llangovan, is chairman of Farmers for Action, an organisation which is reacting to the price farmers are being paid for a litre of milk.

In the last three months the price paid per litre has dropped by two pence and farmers have been told it will drop by another two pence by August 1.

Mr Handley warned: "These people have got greedy and they have squeezed us and squeezed us to the point we have got to do something drastic just to stay in business.

"We have got to fight for the industry because the shortfall will force farmers out of business and if we don't do something now the industry is going to go completely."

Mr Handley suggested that all the milk processors have to do is reinstate the original prices. He added, "Only then can we sit down and talk about the direction of the dairy industry in the future and make sure that this never happens again."

Supermarket giants Morrisons and the Co-op agreed to raise payments to milk suppliers after farmers mounted a blockade at their depots over the weekend in protest at the price cuts.

The Co-Operative Group has said it will now pay producers a total price of 29p per litre - the same price it costs to produce a litre of milk.

Morrisons said it was increasing its payments by 5p per litre, which will be reviewed after three months.

'It's now critical that other retailers and major buyers of milk respond to the responsible steps Morrisons and the Co-op are taking," added Mr Handley.

Lidl has since indicated that it is considering increasing the price it pays to milk processors.

Mr Handley, who first came to the public attention during the fuel protests of September 2000, which brought Britain to a virtual standstill, added, "In the past week we have organised 14 demonstrations and we are not stopping until this situation is resolved.

"If we don't make a stand now we could be facing the complete collapse of the milk industry in Britain. We need all farmers to make a stand so as to make it a viable business proposition.

"It's no good farmers sitting on their backsides letting others do the campaigning, we need full support.

I am not doing this for myself, it's the next generation I am looking to. If we don't get this resolved now there will not be a younger generation coming forward to take over dairy herds. Young people have the right to earn a living in farming.

"Yes it's hard campaigning and running a herd of pedigree Jersey cows at the same time, but we have to make sacrifices to safeguard farmers' livelihoods now and in the future."

Commenting on the agreement reached between farmers and processors regarding the price of milk, Roger Williams, Brecon and Radnorshire MP said at the Royal Welsh Show: "I very much welcome this initial agreement that has been reached between farmers and processors. A voluntary agreement is a better outcome for all concerned. I understand that more work needs to be done but there is willingness from both sides to ensure that the farmers and consumers of Wales get a fair deal for Welsh milk."

A spokesman for Robert Wiseman Dairies said: "We fully understand the strength of feeling amongst dairy producers and continue to engage with those with an interest in the dairy supply chain.

"It is important to stress we are not in a position to fund a milk price at the level it was prior to the global collapse in the value of cream.

"It is our hope that the market for liquid milk and bulk cream, which is at the core of this issue, will quickly find a balance which will allow us to return improved prices to farmers."