Retailers should use better branding and clearer labelling to inform shoppers when they are buying British dairy products, the environment secretary has said.

Elizabeth Truss, also the MP for South West Norfolk, made the call following a meeting between ministers and the National Farmers' Union (NFU) to discuss the future of dairy farmers across the UK.

Dozens of demonstrations have taken place over the past three week, including milk trolley challenges and bringing cattle into supermarkets.

Aldi, Lidl and Asda agreed to pay 28p per litre to farmers for milk, while Morrisons launched a brand of milk and cheese to directly support producers.

Farmers estimate that it costs between 30 and 32p to produce a litre of milk, but were being paid an average of 23.66p in June - after a drop of 25pc in a year.

Ms Truss, with ministers from Scotland, Wales and Northern Ireland, met members of the farming industry in London today.

'It was an encouraging meeting and I believe we can help build stronger foundations that give the industry the long-term stability and commercial opportunities it needs to manage global volatility,' she said.

'I recognise the seriousness of the current situation for the dairy industry and for farming as a whole. Our hard working farmers and the £100bn food and farming industry are vital for our economy and our countryside.

'A global surplus of milk is causing low prices around the world - well beyond the control of farmers.

'I want to see this situation taken seriously by the EU who have the means to help farmers manage this volatility and build resilience.'

Ms Truss said she would be 'emphasising' the need for a futures market and insurance for dairy products when she meets agriculture ministers next month.

A new working group with the UK farming minister and the Agriculture and Horticulture Development Board (AHDB) is being set up to develop best practice models in the industry.

'It is in everyone's interest that supermarkets, caterers and the food industry have a security of supply of milk,' she added.

'As well as milk, more than 50pc of the UK dairy market is in products such as cheese and butter.

'Yet we have a dairy deficit as less than half the butter and cheese we eat is made from British milk.

'I want to see better branding and clearer labelling of dairy products in supermarkets, retailers and throughout the catering industry so that people know when they are buying British, and we have agreed to have further discussions with the food industry on this.

'Dairy exports topped £1.4bn last year but I am determined to see this rise even more.'

Ms Truss said she had invited the dairy industry to play a 'bigger role' in future trade missions such as in China in the autumn, where there is growing demand for British produce.