The Deputy Minister provided evidence on the measures being considered and being delivered by the Welsh Government to support the Dairy sector in Wales.
The measures aim to help the sector meet future challenges and take advantage of the opportunities presented in an increasingly volatile and globalised economy.
Mr Davies said:
"The dairy sector is a key part of our food and farming industry in Wales, and the Welsh Government is working to ensure it has a prosperous and sustainable future.
"I am creating a Dairy Forum to ensure that I have direct and regular access to expert advice from those working in the sector. I have also launched a Plan for Milk which demonstrates that I am taking both a practical and long-term approach to ensuring that the Welsh dairy industry emerges from its current difficulties in a strong position."
Mr Davies stressed that the voluntary code of practice between suppliers and processors had to be given time to work. Mr Davies confirmed that draft legislation regarding written contracts between processors and dairy farmers had been prepared by his officials and would be enacted if necessary.
The Deputy Minister spoke to the Committee about the importance of the Welsh Dairy summit which was held in June of this year.
Mr Davies also stressed that the legislation currently before the UK Parliament to establish a Groceries Code Adjudicator to monitor the operation of large retailers needed to be strengthened.