Warrnambool Cheese and Butter is offering farmers 28 cents a litre for milk this season, despite farmers saying production costs are around 30 cents per litre.
Earlier, Warrnambool's competitor, Murray-Goulburn, announced that it would be cutting its milk price to 26 cents per litre, a move the company's chairman says will probably force some farmers out of the industry.
Ken Lyons from the South Australian Dairy Farmers Association says the global downturn has meant that countries do not have the money for dairy products.
Source: ABC News
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