Frustrated Victorian farmers struggling to cope with unexpected milk price cuts have called on shoppers to steer clear of homebrand varieties as they move to drastically cut cattle in a bid to survive.
Australia's biggest dairy co-operative Murray Goulburn slashed the price it pays farmers for milk solids from $5.60 a kilogram to between $4.75 and $5 a kilogram and issued a profit downgrade, leaving farmers facing huge bills.
It's a move its major competitor Fonterra mirrored soon after.
They blame a slump in global prices - down about 60 per cent since early 2014 - for their decision.
Gippsland farmer and Fonterra milk supplier Ron Paynter said it was one of the worst times he had seen in his 20 years in the industry.
He said dry conditions had made it more difficult for farmers, who had made many financial decisions based on the elevated milk price.
"Environmental pressures meant that, based on that figure ($5.60/kg), we made decision to bring in more expensive feed and extra grain to feed the cattle," Mr Paynter told AAP on Tuesday.
"If we knew the price could be $5 or under we would have made different decisions."
He said the uneven industry meant some farmers would be hit harder by the cuts than others - and Victorian farmers would be the hardest hit.
He called on consumers to show their support by purchasing branded milk rather than homebrand milk from their supermarkets - as farmers get a bigger piece of the pie.
Another Fonterra milk supplier, Colin Ritchies, from Nar Nar Goon North, said he had seen good times and bad times in his 25 years in the industry - but recently the good times weren't good enough.
Cutting his cattle from 250 to 150 means he'll be able to survive but he'll have to get a job off the farm to earn a living.
Warrnambool farmer Jock O'Keefe is worried the industry will take a big hit.
"No doubt there will be a big drop in prices next year. Soon enough we won't be able to feed ourselves," he said.
Victorian agriculture minister Jaala Pulford on Tuesday met banks to ask them to work with farmers facing financial strife.
Extra counsellors will also be brought in to help devastated farmers deal with financial pressures.
A class action launched in the Victorian Supreme Court alleges Murray Goulburn misinformed investors when it partially floated on the stock market in 2015.
Three of its directors have quit the board since the price decrease announcement, which cost the jobs of Murray Goulburn managing director Gary Helou and chief financial officer Brad Hingle.
Farmers are expected to rally on the steps of the Victorian parliament next Wednesday at noon.
