CALLS for government assistance are mounting as dairy farmers wait for news of opening milk prices that could be below cost of production.

Last week the Australian Milk Producers Association called for the Federal Government to back a 35c/litre floor price to keep farmers viable.

Other industry leaders and farmers have also joined the cause.

The call comes as the Australian Bureau of Agricultural and Resource Economics says farm-gate milk prices could plunge by more than 17 per cent to just 30 cents a litre on average in 2009-10.

If realised, it means prices will have fallen by a third in just two years - the worst slump on record.

Dairy exports are also heading south, set to drop 17 per cent to less than $2.3 billion in 2009-10.

For southern NSW farmer Bill Doohan, of Finley, NSW, next season's milk price would have to average 35c/litre for producers "just to live."

The United Dairy Power supplier welcomed AMPA's action and said it was about time the Government recognised the country's farmers.

"If they can help car dealers, why can't they help food producers," he said. "Food producers are much more important than car dealers."

The need for government assistance has also been flagged by Warrnambool Cheese and Butter chief John McLean.

Earlier this month he said the Government should consider financial support in states where more than 50 per cent of farmers' supply went to the commodity market.

UDP managing director Tony Esposito "absolutely" supported calls for government help.

But Agriculture Minister Tony Burke said milk prices was a battle farmers would have to fight themselves.

"The growth of the dairy industry, particularly in the last few years, has been a story of increasing productivity through competition," he said.

"To go back to the days of setting a floor price has the potential to undo many of the reasons our dairy sector is so strong."

Milk companies are expected to announce opening milk prices over the next week.

The companies say they are battling to pin down a value for milk to start the season, due to the fluctuating Australia dollar, but indications point to a price range of 24-29c/litre.

Murray Goulburn chairman Ian MacAulay, who has previously used the range as an opening-price indication, said the co-operative would tell farmers the price news "as soon as we can."

ABARE has forecast a 17.5 per cent fall in the farmgate milk price for the next 12 months.