But with Murray Goulburn poised to cut the amount it pays for milk even lower, the father-of-three admits things will get "tough".

The nation's largest milk processor announced on Tuesday an opening price of $4.31 per kilogram for milk solids next season, starting July 1.

That price won't even cover the costs for the South Gippsland farmer, whose family has been supplying to Murray Goulburn for more years than he can remember.

"Our break-even price is ...[up to] $4.90 ...and that's on a pretty tight budget as well," he said.

"It is definitely going to be tough ...there is going to be some pain, but we have had a lower milk price and got through..."

Murray Goulburn said on Tuesday it expected its price to rise to $4.80 by the end of next season.

Mr Murphy said his position in the coming financial year depended upon the decline in the price of other variables, including grain and fertilisers, as well as lowered bank interest on the farm mortgage.

"Most of those things are coming down, which would assist me to look towards that profitable margin," he said.

"It is still going to be tough though, I am not going to sugar-coat it. It is going to be a tough year to get through with that milk price."

However, the 44-year-old, who has 280 Friesian cows, said the world market dictated what Murray Goulburn could pay.

"They can only pay us what they can extract from the global market," Mr Murphy said.

"And I know that as a supplier... I know that I am exposed to the volatility of the global market."

To survive, he has already let go of a casual employee.

And there will be more cuts to make.

"We will be looking at what we can do on business expenses to keep the costs as low as possible," Mr Murphy said.

He and his wife Trudy will consider drawing upon their savings, selling assets, and even taking out another bank loan to help put food on the table and pay farming bills.

He said his wife, Trudy, could also increase her hours at the local primary school where she works as an integration aide.

An earlier price cut led to an $11.4 million funding package from the Victorian government and the industry and a $555 million low-interest federal loan scheme to help farmers adjust.

"The dairy industry will need supportive banks to assist us through this time," Mr Murphy said.

"We are hoping that if we needed more money, [the banks] will support us with that, or if we needed to change the terms of our loans, they will be supportive of that.

"It is just a matter of hanging out for as long as we can, for as best as we can, looking for that turnaround."

Walking away, however, isn't an option just yet.

"I still think there is a future...in the dairy industry," he said.

"It is just matter of how we get through this bit and start going again later on."

With Patrick Hatch