WHEN you pour milk over cornflakes in the morning, do you ever think of the work that goes into getting it from the cows to supermarket shelves? The average cost of a pint of milk is about 30p but farmers receive less than a third of that money, despite being vitally important in the chain. Farmers across East Lancashire have been protesting that new hygiene standards and the falling prices they can expect for their produce is crippling the dairy business. Reporter VICTORIA EGLINGTON takes a look at an industry on its knees.

MILK is an essential breakfast ingredient for tens of thousands across East Lancashire, but farmers say they are crippling themselves to meet new hygiene laws and are being forced to sell milk for less than 10p a pint.

A new campaign, vigorously supported by East Lancs farmers, has brought the issue into the public arena.

The Fair Share of the Bottle campaign, which toured the North West before moving on to London, was designed to highlight the huge gap between what the farmers are paid for their milk and the supermarket and doorstep prices.

The National Farmers' Union warns that the industry is on the verge of collapse and a further price cut is likely to drive many out of business.

The Government held a top-level farming summit in Downing Street to discuss the agricultural crisis, at which it was agreed to inject £200million into the industry.

Last month , farmers lobbied outside Blackburn Town Hall with the message that falling milk prices are bringing the industry to its knees.

The Fair Share of the Bottle march, organised by the NFU, highlighted the plight of farmers receiving less than 9p per pint.

Chipping dairy farmer Peter Stott said for two years he has operated on a loss through winter and recouped that money to just about break even during summer, when his cows eat grass instead of hay. And he will receive about £9 for each of his 60 cows as compensation from the Government's multi-million pound rescue package.

His cows produce about 1,000 litres of milk per day. He receives about 16p per litre of milk -- which equates to less than 8p per pint -- but his production costs amount to more than 12p per litre, leaving him a marginal amount to live and pay his mortgage.

Mr Stott believes to return farming to its healthier state of four years ago, when farmers received about 26p per litre of milk, the pound needs to be weakened and the Government needs to lower or remove costs such as call-out fees for mandatory dairy inspections.

He does stress, however, that falling milk prices have been pushed on farmers by supermarkets, which use milk as a 'loss leader' -- an essential item making little if any money -- to entice people into their stores. This has driven down prices.

Farmers John Wallbank and Ray Seedall, who together run a farm in Mellor, said decreasing milk prices are leaving them almost bankrupt.

Mr Seedall said: "It's been a struggle for nearly two years and we are on our last legs.

"The people in the middle are taking too much and the strong pound does not help." But Steve Heaton, NFU regional director, said: "We must remember that although £200million is a lot of money, farming in Britain has been haemorrhaging for three years and there are no quick fixes to turn the industry round."

Countryside Alliance chief executive Richard Burge said: "This package may tide them over for a few months, but we need delivery on these promises before they can picture any long-term future."

Ribble Valley MP Nigel Evans said: "Farmers work 20-hour days, seven days a week but are seeing no returns. What does this say about the future of our dairy industry?"

But, as some farmers fight to keep operating, Bashall Eaves farmer Barry Barnes has fought to expand his business.

Mr Barnes battled with nearby residents for more than a year to get planning permission for a multi-million pound proposal to amalgamate his two farms at Withgill Fold in the Ribble Valley, install state-of-the-art technology and increase his livestock.

Protesters claimed his plans would over shadow their homes because of the sheer size of the new milking sheds and the noise would destroy their quiet rural hamlet.

Ribble Valley Borough Council said the development should go ahead with strict controls.

Tesco and Sainsbury's, with Ribble Valley stores, could not comment on milk prices.