Geoff Tomlinson, head of Rural at Napthens solicitors, an NFU panel firm, admits the recent crisis which saw DFOB go into receivership could lead to some farmers leaving the industry.

However, he still believes the prospects for the industry in the region for the next few years are very good.

Geoff was speaking after attending an emergency meeting of NFU dairy farmer members, which saw more than 30 farmers from Lancashire and Cumbria meet to discuss the way forward. All the farmers present had previously supplied milk to DFOB.

DFOB went into receivership after suffering losses meaning it was unable to pay its members an economical price for their milk.

During the meeting, Adam Briggs, NFU regional director, explained many members are facing a dilemma of being forced to decide whether to carry on supplying milk to DFOB, or move to another buyer if they can secure a new contract.

Geoff, who advises many farmers across Lancashire and Cumbria, has warned that they must stick together, and negotiate sensible, even-handed contracts with milk buyers to secure the future of the regional industry.

He said: “For many dairy farmers the collapse of DFOB is a turning point. Prospects for the industry in the North West are still good, but farmers who do remain in the industry – and not all of them will – can only secure the best deals for themselves going forward if they rely on strength in numbers.

“If taking up new contracts, dairy farmers should be wary of signing the first piece of paper which might be put in front of them by a dairy company, because of the obvious danger that they could be tied into an unsatisfactory contract for a long time to come.

“The fact that the receiver has said DFOB suppliers will not be paid for milk supplied during May or in the first three days of June, and the fact that they have already lost their capital in DFOB, will already be causing severe cash flow problems for all those farmers involved. For some it could be the last straw - it’s that serious.

“Farmers struggling to cope should contact their advisors or the NFU for more information.”