FONTERRA and UDP have announced their opening milk prices.
Fonterra has announced an average annual return of $3.60 a kilogram of milk solids, while UDP has announced a price of 34.5c litre.
Fonterra national milk services manager Heather Stacy said the company's prices reflected "the difficult conditions the industry is currently experiencing as a result of the global recession".
"Milk powder is currently trading internationally at less than US$2,000 per tonne while at the same time the Australian dollar is up around US80c," Ms Stacy said.
"These factors are putting severe downward pressure on Australian prices.
"These are challenging times for the dairy industry, but Fonterra has a robust business model that will enable the company to manage this difficult period and continue to provide leading returns to our suppliers."
Ms Stacy said Fonterra was "acutely aware that many dairy farmers are doing it tough due to the drought, high input costs and the recent volatility in the milk price."
"Fonterra is offering support to our suppliers, such as interest free payment advances for the next six months, to help them manage their cash flow and make informed decisions," she said.
UDP managing director Tony Esposito told The Weekly Times on Friday the company had informed suppliers it would be paying them an annual average of $34.5c a litre.
The announcements by Fonterra and UDP follow news that Tatura Milk Industries will pay its 300 suppliers $3.80 a kilogram of milk solids, or 28c a litre, this season.
