Lack of profitability in the dairy and pig sectors is also threatening the feed sector, a farming body has warned.

The Agricultural Industries Confederation (AIC), which represents the UK’s animal feed sector. says in recent months, prices of raw ingredients for feed producers have soared due to shifts in world markets.

The London futures price for November wheat increased by more than �40 per tonne whilst the Chicago soya price for September increased by more than �80 per tonne, it said, and these are couple with ‘inexorable’ rises in haulage and fuel costs.

“Feed producers find themselves between a rock and hard place,” said AIC chief executive David Caffall.

“On the one hand costs beyond their control are rising; while on the other hand their farmer customers are receiving inadequate returns for their produce.

“We estimate that AIC feed members directly employ around 7,500 people and indirectly contributes to many other industry sectors and local economies.”

Sustainability required “a fair return for everyone involved along the chain from ingredient supplier, through feed producer and distributor to the farm and on to the retail shelf”, he said.

“There must be equitable returns at every step if we are to achieve a truly sustainable industry capable of delivering quality food to a growing population. That is why AIC stands firmly alongside our livestock customers in demanding fair returns.”