Farmers for Action (FFA) said there could be protests as soon as August if processors do not provide satisfactory explanations.
FFA Chairman David Handley said higher prices in milk powder and fats are not being passed down to producers and called on processors to explain why.
"Milk prices on the spot market have leapt dramatically and look set to improve further. However some processors and retailers are holding back from allowing fairer returns to dairy farmers and that is unacceptable.
"When prices were 28ppl or 30ppl on a falling market they fell to below 20ppl. We want an explanation as to why when increases came they have not increased farmgate prices."
Mr Handley said unless there is urgent change they will have ’no option’ but to take the protest ’to the doors of those retailers and processors who are most to blame.’
He said the explanations they had got so far were ’unsatisfactory.’
"They are saying they are tied into long term contracts. That is not the dairy farmer’s problem, it is their problem," he said.
He said representatives would attend ’any meeting, anywhere in the country.’
"If they can show a paper trail and show they are not keeping the money that is fine.
"We do not want to protest. What we want to see is movement.
"Since our formation every time we have resorted to protest, the money has been found."
Stephen Wyrill, TFA national chairman, said the TFA was calling for greater intervention to make the market more efficient and fairer for farmers.
"Some retailers and processors are using their dominant positions within the supply chain to protect their own returns and profitability without ensuring a fair return to primary producers.
"These issues need a long-term solution which is why the TFA has been calling for reforms to the remit of the Groceries Code Adjudicator both to be able to consider the impact of relationships all the way through retail supply chains rather than just direct contracts between processors and retailers," he said.