It means that farmers will be able to challenge prices and more easily raise concerns with supply contracts, helping to make sure they receive a fair price for their product.

It follows on from a key commitment set out at the Prime Minister’s Farm to Fork Summit earlier this year and the government says that the regulations will help establish stability and accountability across the dairy supply chain by enabling farmers to challenge prices, stop contract changes being imposed on farmers without agreement, and ensure farmers are able to more easily raise concerns.

The farming minister, Mark Spencer announced the move during his visit on Tuesday, day one of the show, and said the government had been prompted to step in because of “unfairness” in the past.

He said: “It is about getting the dairy industry fairness in the supply chain. Being a dairy farmer is pretty hard work but with making long term decisions, you get comfort the system is fair.

"In the past some people have not been as fair as they should have been, so we are going to step in and say, ‘this is how you can challenge contracts if you think it is not fair’.

“The majority have a positive relationship with their contracts, for some I hope it gives them confidence if they feel they are not being treated fairly.

“For the first time, in legislation, they will have the power of the Ombudsman and regulators behind them. In the past, you could only walk away from the contract that has been mistreating you.”

Other aspects of the regulation mean farmers have clearer pricing terms, with contracts setting out the factors which generate the milk price and allowing farmers to challenge prices if they feel this process isn’t being followed; changes to contracts can't be imposed on farmers without their agreement; contracts will all include a straight-forward way to raise concerns; clear rules put in place on notice periods and contractual exclusivity.

In addition, there is also an enforcement mechanism to guarantee the regulations are followed.

Mr Spencer said: “We hope we never have to step in but we hope people behave in a right and proper way. If you have not followed the rules, there needs to be a sanction that deters that behaviour.”

The regulation is expected to be made legal before Christmas and will be introduced over a period of two years to allow the sector to adapt and in light of current contracts that may be held.

New reviews will begin in Autumn to help establish fairer supply chains in the eggs and horticulture sectors, and following a review last year, regulations are being developed to improve relationships in the UK pig supply chain.

NFU dairy board chair Michael Oakes said: “For a long time, unfair milk contracts have held British dairy businesses back, and these changes will give dairy farmers much needed business security and confidence, as well as helping to share risk along the dairy supply chain.

“This announcement signals that we are on the right path to building a stronger, more resilient future for the British dairy sector."

Great Yorkshire Show: Government announces new regulations to help get fairer prices for dairy farmers