UP to 4 per cent of southwest Victoria's dairy industry has gone into administration in the past fortnight.
That's according to Farmer Power chairman Chris Gleeson.
Mr Gleeson said the figure was calculated with the Victorian Farmers Federation and United Dairyfarmers of Victoria.
Farmer Power, the VFF and UDV met federal Agriculture Minister Joe Ludwig in Melbourne last week.
"He understood there was a problem out there," Mr Gleeson said.
"At the end of the day we need short-term assistance (and) the Government to work with us to fix some markets to also obtain better milk prices."
UDV president Kerry Callow said there was substance in the administration figures and more analysis about the cause of the problem was needed.
She said the level of farm debt wasn't supported by recent figures collected by the industry and independent figures were important in building a case for the way forward.
"What has happened in the last few weeks is a major concern for the industry and a major concern for the processors out there," she said.
One southwest Victorian farmer, whose business is in liquidation, this week told The Weekly Times this season's farmgate payment drop had cost the business hundreds of thousands of dollars.
The milk price drop, poor weather conditions, high costs and the fact the business was already "volatile" had led to its demise.
"You are still trying to service a debt sitting on the high side when you are getting the low (price) bit," she said.
The pain of low milk prices hasn't just been felt at farmer level.
After the 200-strong dairy crisis meeting at Mt Gambier, South Australia last week, DairyTech South East owner Rob Ciavatta told The Weekly Times he was owed close to $300,000 from dairy farmers for parts.
Servicing the region from Tintinara in South Australia to Orford, near Warrnambool, he said the situation had got progressively worse since May last year.
"I think there is a real issue," he said.
"There's not new infrastructure going in, just goods to survive."
Mr Ciavatta said carrying the debt had forced him to lean on his product suppliers to extend their accounts, but he has also cut staff and was looking to reduce hours for workers.