Farm minister Jim Paice has explained how contracts between farmers and dairy processors are to be freely negotiated, fairer and more transparent.
Farmers and processors agreed the main points of a dairy industry code of practice on milk contracts after three hours of talks at the Royal Welsh Show.
The finer details of the code will now be finalised by all parties by the end of August.
Individual farmers will negotiate contracts covering issues including pricing and notice periods, said Mr Paice, who brokered the agreement.
Farmers will have the ability to leave contracts more easily if they are unhappy with the price they receive.
For more on the milk crisis see our dedicated page
For more from the Royal Welsh Show see our page on the event