The Government is to hold talks with dairy farmers following two nights of protests over the prices paid to milk suppliers.

Environment Secretary Caroline Spelman and Farming Minister Jim Paice are to meet farmers, milk processors and supermarkets tomorrow, a spokesman for the Department for Environment, Food and Rural Affairs (Defra) confirmed.

The ministers will hold talks at the Royal Welsh Show, in Powys, to try to resolve the crisis in the dairy industry.

Dairy farmers are furious about cuts of up to 2p a litre in the amount they receive from major milk processors and many fear the shortfall will force them out of business.

The two nights of demonstrations are the latest in a series of protests by farmers who are angry that they are to be paid less for their milk than it costs to produce it.

The Co-Operative and Morrisons supermarkets have responded by announcing rises in premiums paid to farmers for milk.

Paice said yesterday that he would hold a meeting this week with representatives of the big supermarkets to try to get agreement to introduce a voluntary code for contracts with suppliers.

The protest group Farmers For Action said about 750 of its members turned out last night to demonstrate outside a Robert Wiseman dairy and another plant.

Morrisons said yesterday that it was increasing by 5p per litre the amount it pays for milk, 24 hours after the Co-op increased the premium it pays to farmers.