The support package includes a $5.2 million contribution from the dairy industry that comprises $1.4 million from the Gardiner Foundation, $2.8 million from Dairy Australia and up to $1 million from Murray Goulburn.

The total package includes:

- A major expansion of Dairy Australia’s Tactics for Tight Times and Taking Stock programs, providing specialised on farm business support to enable dairy farmers make the best decisions

- $240,000 boost towards the Rural Financial Counselling Service, ensuring dairy farmers can get independent and confidential financial counselling

- $220,000 for two full-time equivalent support workers at the United Dairyfarmers of Victoria (UDV) to assist farmers.

As part of the package, the state government has set aside $4.5 million to support affected farming communities and will consult on how these funds are best spent.

The package follows a $1.5 million mental health wellbeing package for dairy farmers that was announced last week.

That package included extra counselling services, mental health first aid training, support for community events and a $100,000 boost towards the Look Over the Farm Gate program.

Premier Daniel Andrews said the government was “putting dairy farmers and their families first by providing them with the support they need to look after themselves – and each other. “

UDV president Adam Jenkins, of South Purrumbete, thanked the state government for “again stepping up to the mark and offering support in a difficult time for the dairy industry.

“This is about supporting farmers as they go through tough times; this is not going to put extra dollars in farmers’ pockets in the wake of processors’ milk price cuts and the global slump in dairy prices.

“This crisis is all about farmers working together to find practical solutions to the enormous challenges we all now face,” Mr Jenkins said.

He said dairy farmers were still frustrated and angry at the price cuts and claw-backs that Murray Goulburn and Fonterra had implemented.

Mr Jenkins said the UDV was seeking legal advice on removing the claw-back clauses in dairy farmers’ supply contracts.

It was also pushing processors to reform their milk pricing structures and to deliver certainty to farmers by announcing an opening price for the 2016-2017 milk season as soon as possible.

Mr Jenkins said the UDV had also recently met with Australian Competition and Consumer Commission (ACCC) Agriculture Commissioner Mick Keogh and other ACCC officers who were examining the timing and notice of the MG and Fonterra milk price cuts to determine if they involved misleading conduct or unconscionable conduct.

For dairy farmers and their families seeking help, they can phone Lifeline on 13 11 14.