The bodies representing farmers and milk processors have reached an agreement on a voluntary code of best practice over dairy prices.
Earlier this summer, Welsh farmers joined protests and blockades, angry at drops in the price they've been receiving for their milk.
It's believed the code of best practise will give dairy farmers more security against price fluctuation.
This important initiative builds upon existing arrangements, which give farmers and processors security in business relationships, whilst adding additional safeguards that will assure farmers that their contracts are not putting them at a disadvantage in the marketplace. The code should also enable dairy farmers and processors to build relationships of trust and mutual understanding. Only on this basis can the industry create the added value that will protect it from price volatility.
It follows a series of blockades by group Farmers for Action in protest of the prices they receive from suppliers for their produce.
Welsh dairy farmers said they won't strike during the Olympics but are prepared to protest again if milk processors fail to reverse cuts.
Dairy farmers will meet with the NFU at Welshpool market this morning to discuss the latest developments in the row over milk prices.