The producers, who traditionally supply the Hastings Co-operative, were forced into the almost unimaginable position after the Co-op offered individual suppliers just 30 cents per litre for their product.

Co-op CEO Phillip Bryant said he was calling on the 'true believers' to support local products in an attempt to overcome the situation.

"We are trying to drive our product into more markets, we have a sales person out there on the road trying to sell more of our locally produced products," he said.

"But when you are locked out of 80 per cent of the market because of the multi-nationals, we have to go to the restaurants, the delis and the independent grocers ... it is the nature of the Australian retail market.

"We have good, local, award-winning products ... this is a call for help and we really want to engage our own local community. Those folks in Kendall and Kew, Laurieton and Wauchope; we want you to purchase our locally produced products. We are asking all those corner stores, to buy local and support locals (employees) and support local farmers.

"This is a cry for the true believers."

Mr Bryant said he wanted it to be clear that the factory is committed to providing the best farm gate price possible to the farmers.

"We know they are hurting but we can't help them if we go broke," he added.

The CEO said the global financial situation had seen the local (Australia-wide) market flooded with excess product which had forced a downturn in prices.

"There is a much larger supply of excess milk currently in our market and in the past we could on-sell this excess. This is not the case now.

"What the Co-op cannot pay is 45 cents per litre and turn it into product that only sells for the equivalent of 25 cents per litre."

One member of the newly formed bargaining group, local producer Ian Lindsay, said the cost of production was around 40 cents a litre with the Co-op only offering 30 cents per litre.