Leading food and beverage company, Lion, has left farmers unsure about their future following its announcement that it's seeking a new round of farm-gate pricing with producers.
According to the ABC, the changes exclude purchasing from suppliers of less than 1.5m litres as well as those in certain regions, leaving many NSW and south-east Queensland farmers feeling vulnerable.
The Dairy Farmers Co-op isn't supporting the changes, arguing that up to 60 percent of its members could be left without a vendor or real price guarantees, and has branded the move as "unprincipled" and a "take it or leave it" approach.
However Lion is arguing that today's competitive dairy market means suppliers and producers need to reassess how milk is supplied.
Mike Logan, executive officer at NSW lobby group, Dairy Connect, reassured producers, arguing that supply discussions are continuing and there's a market out there for existing producers.
"It is doom and gloom in the first instance because people are going to lose contracts but in the second instance there are more people that want NSW milk than there are available," he said.