ROB Pandolfo has one word for the dairy industry-unsustainable.

"My grain-dial has been turned back, because you don't spend any money," the Drouin South dairy farmer said.

"Infrastructure-you just make do with what you have got.

"Repairs, you just patch it up, but that doesn't bode for long going forward."

The Burra Foods supplier feels the actions he has been forced to take on his farm, as a result of the low milk price this season, will be destructive for his business in the long-term.

"I am mining my property," he said.

"Taking milk solids off and not putting fertiliser on."

Rob and his wife Marita received 24.5c/litre in their most recent milk cheque, for their 4 per cent butterfat and 3.1 per cent protein milk during December.

While season average predictions estimate their business would finish at between 33-34c/litre, he says it won't be enough to cover all costs.

"At the moment, it costs me to produce," he said.

"I have made my costs match my production, (but) that scale is always moving."

Rob said dairy farmers needed a minimum 35c/litre to keep going.

"It's about giving us a fair price for the product we supply," he said.

"For the industry, 35c/litre is mid-way between high and low and they are still not there yet."

Milking 275 Holsteins on 123ha, the Pandolfos have looked to their pastures and crops as a way to cut costs.

Little effort was put into their 6ha millet, winfred rape and pasja crop this year.

It missed out on the usual spraying-out before sowing as well as lime and fertiliser applications.

Spraying for weeds has also been put on the back-burner.

"A friend of mine told me to go broke slowly," Rob said. "(Even if it means) sitting inside your house and do nothing."

In a bid to save money, Rob has not changed rubberware in the dairy.

While he has not sat idle, he has avoided going to town.

When he has to, he puts "the blinkers on" to avoid blowing the budget.

Rob questioned the motivations behind many of the milk company's recent bids to search for more milk.

He said there was a simple solution to the problem of a so-called supply "shortage."

"When there's a shortage of grain it (the price) goes up," he said.

"When there's a shortage of anything the price goes up.

"They all want our milk but are not prepared to pay for it."