A FRESH call for "meaningful" price rises for dairy farmers has been made as the exodus from the industry continues.

Martin Burtt, chairman of the National Farmers' Union (NFU) North-East dairy board, warned the financial situation for many milk producers was worsening.

He said: "Some people are in a very bad financial way. If they do not get a meaningful increase they will go out. The tolerance of banks is starting to wear thin."

A recent report said milk producers are now losing 3.42p on every litre produced - more than double the 1.5p loss of 12 months ago.

Three dairy farmers a day are said to be quitting as costs have risen and the farm-gate price has fallen.

Mr Burtt told a dairy board meeting in Northallerton that Tesco's price rise to its "Local Choice" producers may start this month, but said it was conditional on tight quality levels.

He praised the recent Great Milk Debate campaign run by the Women's Institute movement with support from the NFU.

He said thousands of people had attended meetings which highlighted the plight of dairy farmers.