United Dairyfarmers of Victoria president Adam Jenkins said farmers needed a sign to help them plan their next steps.

This followed events at Murray Goulburn which left the industry reeling over the past couple of weeks.

“A lot of farmers are facing uncertainty with the dramatic step-down in milk price and they need stability in order to plan for next season,” Mr Jenkins said.

“Murray Goulburn’s unprecedented action in admitting they overpaid suppliers and cutting the price of milk that has been delivered this year is having a wide-ranging effect on the dairy industry.

“The UDV wants to ensure there is industry support for farmers who are still struggling to understand the impact of this decision on their business and the enormous challenges that lay ahead.”

Mr Jenkins has pointed to an indication in next year’s opening milk price as a way for processors to assist suppliers during this difficult time.

“Many farmers are operating in survival mode right now, and they can’t be expected to make important business decisions without any meaningful sign on what next year’s price will be,” Mr Jenkins said.

“If milk processors want farmers to keep producing milk, they need to send some encouraging signals that the milk is worth producing.

“The only message being delivered to farmers is that we are in for a lower price, and we can’t budget for the season if we don’t know what that price is.”

Dairy farmers have been struck by a number of unfavourable conditions over the past year.

Mr Jenkins says the UDV is working hard to resolve the current situation.

“This has been devastating news for the dairy industry, especially given the additional cost farmers are carrying due to the adverse seasonal conditions,” Mr Jenkins said.

“Our concern is the health and wellbeing of our farming families, and also the service sector that provides such valuable support to the dairy community.”