PRESIDENT of the National Farmers Union, Meurig Raymond, highlighted the co-operative approach when he spoke at a conference staged by the British Dairy Farmers' Foundation.
He said the agriculture industry needed to work together to take full advantage of the growth in demand in the dairy sector.
"Demand for dairy products is growing globally and to keep up with this demand production needs to increase," he explained.
" If we do nothing while our competitors grow and invest in their businesses we risk falling behind them and losing the markets we currently have," he said at the Royal Association for Collaboration Conference.
"To compete in global markets we need to be globally competitive and collaboration is one of the key elements in achieving this.
"Working together can help us achieve stronger and fairer contracts and provide a stronger basis for negotiations.
"Today, we have reasonable milk prices and excellent long term prospects for demand.
"But this positive outlook should not distract us from the need to continue to work together to strengthen our position, invest in the future and plan so we can take full advantage of the increased demand for dairy products."