Rising energy prices are not sustainable for farmers and will be a blow to all in the industry, the Farmers' Union of Wales (FUW) has warned.
Dairy farmers in Wales have reported energy costs rising by up to £1,000 a month, with fears this could rise even higher.
Britain's energy regulator Ofgem will soon unveil the new energy price cap, which is the maximum amount that suppliers can charge.
The cap is expected to rise as global wholesale prices have increased significantly following a squeeze on gas and energy supplies.
The FUW warned that the farming sector in general was "already under huge pressure", such as rising feed and fertiliser prices.
The union's milk and dairy produce committee chairman, Dai Davies warned of the consequences of the energy crisis on the sector.
“The increase in energy prices, which in some cases have been reported to be an extra £1000 a month for dairy businesses, is a blow for all in the industry.”
Whilst farm businesses have different contracts to private holdings when it comes to their energy suppliers, he said the overarching problem remained the same.
“There will be many farm holdings who need to renew their energy contracts this year and they will no doubt be faced with hiked up prices," Mr Davies added.
"This in addition to higher feed and fertiliser prices could prove to be too much for some businesses.”
The FUW has written to Kwasi Kwarteng MP, Secretary of State for Business, urging him to implement policies which would negate the impacts of rising energy prices.
