DAIRY company Murray Goulburn will pay suppliers between 26-27c/lt for the next season, and for some this will mean as little as 23c/lt during the spring.

Murray Goulburn's opening price letter was issued to dairy farmers this morning, and outlined the butterfat and protein payments for the next 12 months.

For July payments for butterfat will be $2.70/kg and protein $7/kg.

This drops to $1.89/kg butterfat and $4.75/kg protein from September to December, before gradually creeping up from January.

Co-operative managing director Stephen O'Rourke said in the letter that milk prices were difficult to forecast too far forward at this stage.

"The opening price reflects current international trading conditions which remain very depressed," he said.

In a bid to assist suppliers cash flow next season Murray Goulburn have signalled it would pay productivity incentives on a quarterly basis.

The letter also said the board has "decided to recommence Share Equity Contributions of 0.65 cents a litre from July 1, 2009, but in recognition of the difficult conditions have the agreed to give suppliers the option to reduce their contribution to 0.25c a litre." 

The 23c a litre spring price is based on a 4.1 per cent butterfat and 3.3 per cent protein score.