The rising cost of milk production in the Isle of Man and around the world is pushing profit margins for farmers and producers to near-record lows.
While farmers' costs are going up, supermarkets are battling for custom by cutting the price of basic foods.
Isle of Man Creamery says as a result, it's struggling to make a good return on its cheese, butter, milk and cream.
Managing Director Findlay McLeod says the creamery also faces a higher energy bill than many of its competitors and the added cost of transport.
A top-to-bottom review of the Cronkbourne operation is now under way, to find cost savings.
Mr McLeod says it's a very difficult situation and something will have to give:
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