A dairy is paying its farmers an extra 3p per litre of milk in an effort to keep production in Wales.
Proper Welsh Milk Company in Whitland, Carmarthenshire, said very little Welsh milk is processed in Wales as most is driven over the border to England.
It says consumers it has spoken to would be happy to pay more for local products and to safeguard Welsh jobs.
Tesco, which stocks Proper Welsh Milk, said so far it is absorbing the cost so shoppers will not face a price rise.
