Farmers are threatening protests after Iceland cut the price of a four-pint milk carton from £1 to 89p. The budget store is using milk as a loss leader – selling below cost price to lure in customers – with the result it is even undercutting discount chains Aldi and Lidl. However, the news has angered dairy farmers who complain they have been hit with a succession of punishing price cuts which are forcing them out of business. Scroll down for video . Farmers are threatening protests after Iceland cut the price of a four-pint milk carton from £1 to 89p . The Farmers For Action campaign group has already held a series of blockades outside dairy and supermarket distribution centres in the past week, with more planned. And last night, farmers’ leaders accused Iceland of being ‘rash and stupid’ as they warned that the company is now likely to face its own protests. FFA chairman David Handley said: ‘This move by Iceland is a disgrace. It will feed through to lower prices paid to farmers. ‘The supermarkets are devaluing milk. We are almost getting to the point it is so cheap that people will buy it because it doesn’t matter if they throw it away. Some farmers are now getting as little as 27.1p a litre for milk to be sold in the high street, which compares to an average cost of production of about 32p . The Farmers For Action campaign group have called Iceland a 'disgrace' - pictured, chairman and CEO of the company, Malcolm Walker . ‘The dairy industry lost 49 milk producers in September.’ Rob Harrison, chairman of the National Farmers’ Union dairy board, said: ‘We will be speaking to Iceland. This continual devaluation of milk is a real concern to our industry. ‘It is rather rash and stupid to do this when lots of dairy farmers are suffering with low prices. ‘Either Iceland is screwing its suppliers or it is subsidising the cost of milk to shoppers. I hope shoppers vote with their feet and support farmers by ensuring they get a fair price for milk. Some farmers want to take action.’ The wholesale prices of milk and other dairy products have collapsed due to a glut in supplies. Some farmers are now getting as little as 27.1p a litre for milk to be sold in the high street, which compares to an average cost of production of about 32p. An Iceland spokesman said: ‘We have not changed the price we pay for our milk, only the price we charge to our customers. ‘We are operating in the most competitive food retail market in the UK any of us can remember, and decided to make a major investment of our own margin to help our customers by offering them really compelling, market-beating value on one of the key essentials they buy every day.’
Iceland slash cost of milk as way of luring customers into their stores .
'Stupid and rash' technique means they even undercut Aldi and Lidl .
Farmers call move a 'disgrace' and say it will be felt by dairy farmers .
Campign group Farmers For Action now planning series of demonstrations .
Farmers are threatening protests after Iceland cut the price of a four-pint milk carton from £1 to 89p. The budget store is using milk as a loss leader – selling below cost price to lure in customers – with the result it is even undercutting discount chains Aldi and Lidl. However, the news has angered dairy farmers who complain they have been hit with a succession of punishing price cuts which are forcing them out of business. Scroll down for video . Farmers are threatening protests after Iceland cut the price of a four-pint milk carton from £1 to 89p . The Farmers For Action campaign group has already held a series of blockades outside dairy and supermarket distribution centres in the past week, with more planned. And last night, farmers’ leaders accused Iceland of being ‘rash and stupid’ as they warned that the company is now likely to face its own protests. FFA chairman David Handley said: ‘This move by Iceland is a disgrace. It will feed through to lower prices paid to farmers. ‘The supermarkets are devaluing milk. We are almost getting to the point it is so cheap that people will buy it because it doesn’t matter if they throw it away. Some farmers are now getting as little as 27.1p a litre for milk to be sold in the high street, which compares to an average cost of production of about 32p . The Farmers For Action campaign group have called Iceland a 'disgrace' - pictured, chairman and CEO of the company, Malcolm Walker . ‘The dairy industry lost 49 milk producers in September.’ Rob Harrison, chairman of the National Farmers’ Union dairy board, said: ‘We will be speaking to Iceland. This continual devaluation of milk is a real concern to our industry. ‘It is rather rash and stupid to do this when lots of dairy farmers are suffering with low prices. ‘Either Iceland is screwing its suppliers or it is subsidising the cost of milk to shoppers. I hope shoppers vote with their feet and support farmers by ensuring they get a fair price for milk. Some farmers want to take action.’ The wholesale prices of milk and other dairy products have collapsed due to a glut in supplies. Some farmers are now getting as little as 27.1p a litre for milk to be sold in the high street, which compares to an average cost of production of about 32p. An Iceland spokesman said: ‘We have not changed the price we pay for our milk, only the price we charge to our customers. ‘We are operating in the most competitive food retail market in the UK any of us can remember, and decided to make a major investment of our own margin to help our customers by offering them really compelling, market-beating value on one of the key essentials they buy every day.’
customers – with the result it is even undercutting discount chains Aldi and Lidl. Farmers For Action campaign group has already stupid’ as they warned that the company is now Iceland a 'disgrace' - pictured, chairman and CEO Union dairy board, said: ‘We will be speaking to cost of milk to shoppers. I hope shoppers vote with their feet and support farmers by ensuring