Farmer's profits will be hit by the price rise

The majority of South West dairy producers are members of the Milk Link co-operative, which is reducing the price it pays by 0.6p per litre.

Even a tiny adjustment could have a big effect on struggling dairy farmers who produce hundreds of thousands of litres of milk a year.

Milk Link has blamed a declining market for whole milk, butter and cream.

Milk Link says more people are buying skimmed and semi skimmed milk, and with a declining market for butter and cream, the butterfat by-product from the milk is proving to be difficult to sell on.

We're being paid a very minimal price James Morrish, farmer

Milk Link claims prices are still slightly higher than at this time last year, but local farmers have reacted angrily to the news.

North Devon farmer James Morrish from the Rural Stress Information Network said: "We are now producing the finest quality milk, I believe, anywhere in the world.

"We have meat and beef and lamb at the highest standard of welfare and quality insurance and we're being paid a very minimal price."