A warning is being given that rising costs are forcing many dairy farmers in the Island to consider their future in the industry.

Chief executive of Isle of Man Creameries Findlay Macleod says dramatic increases in basic items such as fuel, electricity and animal feed are to blame.

The price of a pint of milk is going up by four pence, to 57p, from next weekend, but Mr Macleod believes, in the circumstances, the 7.5 per cent rise is fully justified to maintain security for production on the Island.

A joint media statement from the Creamery and the Department of Agriculture notes that since the last price rise bread has gone up 14 per cent and beer 10 per cent.

Mr Macleod says that, as a farmers' co-operative, his organisation has to ensure dairy producers are paid a price at least comparable to that paid to farmers in the rest of the British Isles.

He says this is especially important as production costs here, both on the farm and in processing, are far greater than elsewhere.

The statement also points out that since the last price rise for milk, electricity has gone up 16 per cent, gas 30 per cent, fuel oil 53 per cent and motor fuel oil 19 per cent.