Simon Hart MP is calling for more transparency in the dairy industry as the profits from the high price of milk is not passed on to farmers.

Producers in Pembrokeshire and Carmarthenshire have seen slight increases in what they are paid for their milk in recent months, but it doesn't compare to the increase in profits seen by the processors and stores.

"Most farmers have had a price increase of about a penny per litre but the prices in the shops have gone up by far more and the cost of cream has never been so high," said Mr Hart.

He discussed the situation with officers from the Farmers Union of Wales during a meeting at the Pembrokeshire County Show (pictured).

"There are fears that the processors are facing difficult times financially and are holding on to as much cash as possible to make ends meet," Mr Hart added.

"Farmers are getting paid slightly more for their milk, but this will be eaten up by them having to pay much more for feed because prices are being driven up by the Russian drought.

"The Government is making progress with a supermarket Ombudsman but I would also like to see more transparency throughout the industry as to the true nature of their costs and profit margins," added Mr Hart.

Other issues discussed at the meeting included problems with controlling Bovine Tb, problems with banks lending to farmers and stricter food labelling.