As many as one in five of the UK's 10,000-plus dairy farms could be forced to close this year, as falling milk prices and rising debt reach crisis levels for farmers across the country, various industry bodies have warned.

The National Farmers Union (NFU) said many dairy farmers are at the end of their tether, operating at a loss and unable to receive any more finance from banks.

“We’re expecting an awful lot to exit the industry by the end of this year, when lots of farmers will have eaten up their savings. Last year the figure was 4pc, but the expectation is more will exit this year, whether it’s 10pc or 20pc,” said the organisation’s chairman Rob Harrison, who also runs his own dairy farm and says he lost £150,000 worth of income last year.

Currently, there are around 10,500 dairy farms across England, Scotland and Wales. Ten years ago, that figure was closer to 21,000.