Greater efforts are essential to maintain secure milk supplies, a Pembrokeshire farmer has said.

Mansel Raymond, NFU Cymru milk board chairman, who farms near Letterston, issued the warning after praising companies that had increased farm gate price.

Mr Raymond said: “Farmers have been calling for price increases to cover costs and allow for reinvestment for months and we are finally starting to get a response.

“Recent announcements have been encouraging, signals that the industry is moving in the right direction — away from the commodity pricing that was so much the scourge of the industry in the past and towards much more structured, collaborative supply chain.”

However, Mr Raymond warned that, while the increases provided some respite, farmers’ desire to invest in their businesses would require greater commitment from the supply chain, not just to pay a profitable price, but to offer farmers a better long-term package to build confidence in fragile circumstances.

He added: “There is clear evidence with milk being brought in from Northern Ireland that falling production has brought the industry to tipping point. I take no pleasure in this, but critical mass is now being eroded alarmingly and the outlook on the markets is gloomy. Nevertheless the industry can turn things around.”