Dairy's price 'argy-bargy' now underway, on a lower opening figure

That was a sentiment echoed by Dairy Australia analyst Eliza Redfern, who delivered the annual Situation and Outlook report in Melbourne.

Ms Redfern told the annual breakfast: "this is just day one, we still have the rest of this month to go

"There is the potential for movement, if past seasons are anything to go by."

She said there was still strong competition, among processors, to secure supply.

Competition was everywhere in all parts of the supply chain, she said.

"We have been seeing that in the form of competition for resources [such as] agricultural land, and the impacts it has on farm exits and diversification," Ms Redfern said.

"We are also seeing it on the product front, whether that's the price competitiveness of our product on the global stage, or domestic product trying to compete with imported products.

"We are also seeing it right down to the retail level, looking at dairy performance, compared with non-dairy."

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Dairy Australia predicts milk pool stabilisation in the coming year

United Dairyfarmers of Victoria president Mark Billing, Colac, supplies ACM and said the current prices were a reasonable starting point.

He was one of several dairy farmers at the annual breakfast and on the discussion panel.

"To me, if we end up in this next four weeks with a price similar to last year, that's not a bad outcome," Mr Billing said.

"There is significant pressure on farm, through costs

"I understand the processors are facing similar costs but we are at the end of the supply chain, where we can get smashed."

He was hopeful competition for the milk pool "bodes well for an increase in price."

"It looks like we are 6-7 per cent off last year, if we can make up that 6-7pc in the next four weeks, that would be great," he said.

The Canadian-owned dairy processor Saputo announced an opening weighted average milk price of $8.90-$9.05 a kilogram milk solids.

The price is at least 25c/kg MS more than the $8.65/kg MS Fonterra announced it would pay its suppliers for the coming financial year.

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Burra Foods has set a minimum farmgate milk price of $8.50-$9.00/kg MS.

Chief executive Stewart Carson acknowledged the minimum price was a reduction on last year.

" Whilst we are disappointed this is the case, we have considered the decreased value in global markets over the last 12 months and the growing un-competitiveness of Australian exports versus other countries," Mr Carson said.

"Australia is the only country in the world that must set a minimum milk price for the next 13 months, yet trade in volatile markets."

He told suppliers Burra Foods was continuing to focus on improving productivity, reducing costs and optimising its product mix with an increasing domestic focus to maximise returns.

"Our successful launch into cream cheese this year has been further endorsed by the board supporting a capacity upgrade to the facility as we continue to focus on new premium markets and products," he said.

Australian Dairy Farmers Corporation set an opening price of $9.05/kg MS, while Union Dairy Company has a figure of $9.20/kg MS milk solids.

ADFC general manager Andrew Sutton told suppliers the announced price was above last season's minimum.

Bega opened at $8.80/kg MS, while ACM set an opening price of $8.69/kg MS to $9.25/kg MS.

Bulla, the first processor out of the blocks, set an opening price of $8.80/kg MS to $9.60/kg MS.

Westbury, Gippsland, dairy farmer, Chris Griffin, said most farmers expected prices to be down on last season's opening.

"I still believe, if farmers do their sums, there will be a margin between what we can be paid and what it costs to produce milk, as our input costs have come down a little bit this year," Mr Griffin, who farms with his son Stuart, said.

There would be plenty of "argy-bargy" over prices, in the coming few weeks, he said.

"I just emphasise farmers have got to do their sums, know the cost of production and work to get that margin as to what they are getting paid - and what it's costing them - as wide as they possibly can."

Mr Griffin said the area he farmed in had a good autumn break and the property would have a feed wedge, going into winter.

"Hopefully we get a bit of rain through the spring and have a reasonable season," he said.

The Griffins milk 480 cows, supplying Fonterra.

"We have been comfortable there for a few years, so I don't see anything changing," he said.

Fellow Gippsland dairy farmer Sarah O'Brien, Denison, said she was feeling "quite positive" about the opening prices,

She was looking forward to the next couple of weeks, to see where they might end up.

The business milks 320 cows in a seasonal herd, with Ms O'Brien saying she and her husband were looking at increasing to 350, this current season.

The O'Briens supply Saputo.

"I am feeling fairly positive that we have got a good season ahead," she said.

"We had a very good break and as long as input prices stay low, there is great opportunity for a very tidy profit again this year."

Tatura dairy farmer Markus Lang supplies Bega Cheese, milking 2100 cows across three farms, and said the prices were the second-best ever announced.

"But it is a drop and we will see where things finish up," Mr Lang said.

"In our business, cost pressures are coming off and if the prices announced are a minimum, going forward, things are positive."

He said he would like to think there was "still some room to move.

"People move around these days, so that means the pressure is on."