BOLTON dairy farmers say their industry is under threat of collapse after First Milk announced it was delaying payment for milk.

First Milk, a co-operative owned by British farmers, said on Monday it was delaying the day's payments to farmers by two weeks — and all subsequent payments — in order to "build a stronger business platform".

Bolton farmer Jim Whitelegg is one of the 1,100 dairy farmers who will not be paid for their milk this week.

Mr Whitelegg, of Snydale Gate Farm, said: “It shouldn’t be happening. Our bills are coming in and we can’t pay anyone. We had no money to start without them withholding it.”

Mr Paice said 2014 had been a terrible year for dairy farmers, with many forced to leave the trade, as it faces what he called a "year of volatility that has never been seen before" in the global dairy industry.

The National Farmers Union announced that the number of dairy farmers in the UK has halved in the last twelve years.

Michael Partington, a prize-winning farmer who runs Dearden’s Farm in Over Hulton, said that in the last year he has been making enough “just to survive".

This year will be the 60th anniversary of the Partington family running the farm, and Mr Partington says he has never known the dairy industry to be in such a bad state.

Mr Partington, who is not with First Milk, said: “Milk is now cheaper than water. We need fair trade for British farmers.”

Another local farmer, who asked not to be named, said: “I’ve never known the industry be as bad even when there was the foot and mouth outbreak.”

The Bolton farmer said he was thankful to have left First Milk four years ago, adding: “Britain will be lucky to have any dairy farmers left.”

Farmers pay into First Milk, which helps with distribution and marketing.

After delaying payment to farmers, First Milk has also requested that farmers increase their investment from 0.5 to 2 per cent.

Lee Truelove, head of communications for First Milk, said this had been done "specifically to make the business robust and to collect and advertise the milk”.