Australia's milk production jumped in April, up 6.4 per cent.
Almost all the WA farms visited have invested in large rotary dairies which is a significant difference from Qld.
Fonterra Australia talks about milk price following the NZ farmgate forecast and Bulla's opening price announcement.
Fair prices are important in milk contracts, but more significant will be the complaint resolution procedures which processors agree to
XCheque analyst Jon Hauser says farmgate milk opening prices will be difficult to pick as Australia won't really know the true impact of the coronavirus crisis on the local dairy industry until August.
If processors use the current market uncertainty to pay farmers a low price, lower production and increased trucking of milk from Victoria at high cost will be the obvious consequence.