TOUGH new environmental regulations could lead to another mass exodus of dairy farmers.

Recent price rises of 7p-8p a litre have largely been gobbled up by rocketing feed, fertiliser and fuel costs.

A dairy conference in Harrogate, North Yorkshire, was warned that farmers simply do not have the money to pay for extra facilities demanded by proposed new regulations.

The extension of the Nitrate Vulnerable Zone (NVZ) to cover 70 per cent, and possibly 100 per cent of England, would require an estimated £50,000 investment per farm in bigger slurry stores.

Hayley Campbell-Gibbons, chief dairy advisor for the National Farmers Union (NFU), said: "For a lot of dairy farmers this is going to be just too much investment to make and we could well be facing another mass exodus of farmers from the dairy sector."

Martin Burtt, North-East NFU dairy board chairman, said increased costs had taken all but about one penny of the 7p-8p price rise.

He warned: "The average age of dairy farmers is going on 60 and a lot are tenants who are not sure if they want to go on, this could be the final straw."

Martin Coward, agriculture director for HSBC Bank, said a recent survey of farmers' intentions showed half planned to invest less than £25,000 over the next five years and only a third were looking to expand.

He said: "That £25,000 is not enough to do anything, it might replace a forage box, but it is certainly not enough to invest in a new parlour, new housing, water or slurry storage, and silage clamps."

The NFU's North-East dairy board will discuss the cost of legislation when it meets at the Bolton Arms, Leyburn, on Wednesday at 7.30pm.

Jonathan Hill, North-East Promar consultant, will discuss current market conditions and future development to try and help dairy farmers plan ahead.