Deputy prime minister Barnaby Joyce has urged retailers to increase the price of milk after meeting Victorian farmers affected by drastic price cuts from dairy giants.
The federal agriculture minister is pleased Coles has promised to boost the price by 20 cents per litre after a meeting with some of the country's largest retailers, and farmers, on Wednesday.
"I know other people have a sense of cynicism about it - I don't," Mr Joyce told reporters in Shepparton.
"I asked the other retailers to look at the work that one of the big retailers have done - and I would like to see it replicated."
Meanwhile, the federal government will continue to work on a support package to complement existing measures, such as the farm household allowance which was boosted after the dairy price changes.
"We're moving down that path and we want to try and get there as quickly as possible," Mr Joyce said.
It's understood the package could be announced as early as Thursday.
Agriculture groups want a long-term plan and have warned the number of dairy farmers in the region could drop by 30 per cent because they can no longer keep operating.
"I'm absolutely hoping that's not the case," Mr Joyce said.
The milk crisis has prompted the teenage daughter of a Victorian dairy producer to launch a petition taking aim at the "greedy" milk companies she says are destroying farming families.
Chloe Scott, 16, and her mother have moved off the family's Boorcan dairy farm to find work in Ballarat, leaving her father Brendan alone to work their property.
The farm is struggling with rising debts due to its payment contract with co-operative Fonterra.
"I mean, you're losing money every time you go milking," the teen told AAP.
The Scotts have slashed their herd from 120 cows to 70, to cut costs.
Ms Scott's change.org petition, which calls on Mr Joyce to review the milk-pricing system, had garnered 106,000 signatures by Wednesday afternoon.
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