One Wagga dairy farmer spoke to The Rural on the condition of anonymity. He confirmed that producers in the area are not tied up in the same situation as their Victorian counterparts, however, that could change.

Most Wagga milk producers supply the New Zealand owned company Fonterra. And they are not selling milk at below-cost-of-production levels.

But there were fears this could change when milk prices are renegotiated for next financial year.

Euberta dairy farmer and Australian Dairy Farmers Association president, Simone Jolliffe was at the coalface of the issue this week. 

She was meeting in Shepparton, Victoria with deputy prime minister Barnaby Joyce to discuss the crisis.

While in Shepparton Mr Joyce welcomed the move by Coles to develop a new brand of milk which would pledge 20 cents a litre towards a fighting fund aimed to help dairy farmers. 

NSW Farmers dairy committee chairman Rob McIntosh has welcomed the move by Coles. 

“While this fund may go some way towards addressing the current crisis of price cuts and claw backs threatening the livelihoods of farmers; it is important to note that this is only one part of a wider conversation regarding the sustainability of the industry,” he said.

Mr McIntosh said not all consumers want to pay more for proprietary brands, but those who do certainly have the gratitude of farmers. “As has been pointed out in this debate, milk is currently cheaper than bottled water and no one would give that a pass mark through the pub test.

“More broadly, I would hope this current focus on milk prices provides a fresh opportunity for the ACCC’s Agricultural Engagement Unit to take a fresh look at a long standing problem,” he said.