UNITED Dairy Power will open its books to new suppliers from January 1.

UDP managing director Tony Esposito said the company was on the hunt for an extra 50-million litres of milk to supply the domestic market.

The news comes after UDP last week announced its first milk price step-up of the season.

Mr Esposito said the extra milk volume would allow 10-20 new suppliers to join the company, depending on their size.

"We've got an opportunity to continue to grow and we're going to take that opportunity," he said.

"We're pretty open to where the milk comes from - east, west or north, but most of it will probably come from the east and the west."

Mr Esposito said the company had "a significant list of farmers waiting to join".

He said farmers were attracted by UDP's consistency in returns over the past decade.

"We finished the best part of 8c/litre above the supposed industry leader Murray Goulburn last year, so the proof is in the results," he said.

"We're not going to say we're going to pay the highest price for milk every season, but we'll continue to be up there and we'll continue to be honest and open with our farmers."

UDP last week announced a step-up of 16c/kg butterfat and 40c/kg protein from January 1.

Mr Esposito said the company had also recently paid its suppliers their autumn and winter milk production bonuses, which had been delayed since October.

The company had cited a tight cash flow as the reason for the hold up.

Suppliers told The Weekly Times in October they were frustrated by the delay, as many had already allocated the payments - averaging $10,000-$15,000 - to crucial feed and fertiliser bills.

But Mr Esposito said the delay had not caused a supplier backlash.

"We were pretty open with our suppliers," he said.

"My phone was open for them to call if they wanted some more information, and probably a dozen or so took that opportunity."

Mr Esposito said about 30 per cent of UDP suppliers were affected by the payment delay.