VICTORIAN Fonterra supplier Greg Barry, of Loch, was not surprised by Fonterra's decision to withdraw its one and only milk price step-up for the season.
"I was expecting something," Mr Barry said.
"It could have been a lot worse. But I expect there will be more bad news down the track."
Fonterra has warned suppliers it is reviewing farmgate milk prices for February to June in light of the "challenges presented by the broader global economic outlook".
One Fish Creek Fonterra supplier said Fonterra "had to do what it had to do" in light of the global slump in milk prices.
"We have to trust them in some sense," the supplier said.
"At least we got one month of the step-up payment and we're in front of MG.
"Everything else is falling - house prices, fuel, fertiliser and grain.
"I was paying $490 for grain (a tonne delivered) two months ago. Now I'm paying $365."
