Speaking at the Dairy Event Dai Davies, NFU Cymru president said: “Country of origin labels on dairy products continue to confuse shoppers and can often mislead them as to where the product actually comes from.”

He used the event to call on the EU’s new High Level Expert Group to sort the problem out once and for all.

Mr Davies, who has a diary farm in Carmarthenshire, said: “Each time I enter a retail outlet I find further examples of this problem. It is high time the Commission intervened and put an end to the current confusion so consumers can make a clear, informed choice when deciding what product to purchase.”

The High Level Expert Group (HLEG) made up of member state representatives, met for the first time in Brussels recently with a mandate to study what arrangements should be put in place to help stabilise the EU dairy market and producer incomes, reduce price volatility and enhance market transparency.

The union believes ongoing discussions in Brussels investigating medium and long term solutions to the problems in the dairy sector back many of the recommendations NFU Cymru have previously made in terms of bringing a fairer and more transparent relationship between producers, processors and retailers.

The commission is also preparing a report into the workings of the supply chain in the dairy sector in an effort to improve transparency and ascertain whether there are any problems of competition. The report is due to be published before the end of the year and will be discussed by the High Level Group.

Mr Davies said: “I welcome this work which I hope will be a further driver to improving the contractual arrangements that exist between all partners in the dairy supply chain. I believe the report will back our campaign for improved milk supply contracts and for an ombudsman to ensure fair play throughout the food supply and to curb the worst excesses of retailers.

“I am somewhat disappointed that the high level group does not have direct farmer representation within its membership but I trust that producers’ views will be actively sought.”