The dairy sector is in a desperate state, MPs have been told, with farmers being paid less for milk than the cost of production.

Four hundred milk producers have quit the business so far this year, compared with 200 over the whole of last year.

Farmers now get paid around 27p for a litre of milk, down from around 33p per litre in the spring. The average cost of production is just over 30p.

A further price cut announced by milk-buyer Arla has added to farmers' woes.

Giving evidence to the Environment, Food and Rural Affairs Committee (Efra), the chairman of Farmers For Action, David Handley, said: "The situation is getting so serious that in the last nine weeks we've passed three individual dairy producers on to the Samaritans because they were in such a desperate state.

when all dairies are shut and we are at the mercy of foreign countries for basic foodstuff we'll see if the prices stay this low.

British supermarkets need to be careful because emerging countries are ready to buy foodstuff at much higher prices than they are and we could soon end up with shelves without basic fruit and veg.

Can we ship milk to developing countries fast enough before it goes off? I think that’s one of those products that doesn’t travel too well - this is why dairy farmers are over the proverbial barrel in this case. I expect that if they could ship abroad and get a fairer price, they would.

As my mother tends to say - “we don’t know the true value of food”, meaning both the value in monetary terms, and the value of it to society.

British supermarkets need to be careful because emerging countries are ready to buy foodstuff at much higher prices than they are and we could soon end up with shelves without basic fruit and veg.