Embattled dairy co-operative Murray Goulburn will meet with suppliers in Rochester on Tuesday night, in one of several meetings being held across Victoria, Tasmania and South Australia.

Last week the company downgraded its anticipated profit to less than half of the $89 million it forecast in last year’s prospectus and cut the price it pays to suppliers, from $5.60 per kilogram milk solids to between $4.75 and $5 per kilogram milk solids.

Nearly 60 per cent of Victoria’s dairy farm businesses supply to Murray Goulburn and the company has a processing plant in Rochester.

Murrabit dairy farmer Andrew Leahy plans to attend tonight’s meeting and hopes for a greater explanation on what has happened.

“The board needs to be more accountable than what they’ve been,” he said.

Mr Leahy said the cut in farmgate prices had a “huge financial impact” on his business.

He said farmers like himself had budgeted for the higher farmgate prices and bought equipment, feed and water accordingly, which they could no longer pay for as per the agreements with their suppliers.

As a result other local businesses were also feeling the pinch, he said.

Mr Leahy was worried milk prices would be substantially lower next year, believing the company would take an “ultra conservative” approach to its pricing in the wake of this event.

“We don’t know how we’ll function,” he said.

Mr Leahy said he had begun looking at the possibility of supplying to another company.

Jenny Wilson, chief executive officer of regional development program Murray Dairy, said a reduction in milk prices only added further pressure to dairy farmers who were already doing it tough.

“Farmers in the region have been battling with a challenging season due to dry conditions,” Ms Wilson said.

She urged dairy farmers to take stock of their situation, look at their options going forward and seek support or advice if needed.

She said farmers had been approaching the organisation in search of support, with the organisation launching Tactics for Tight Times, a business advice program for farmers.

Ms Wilson said it was important dairy farmers also sought social and mental health support in what was a “highly stressful” time for many.

The Victorian government will convene a meeting of processors and industry groups, including Murray Goulburn, on Thursday to discuss industry-led measures to support the welfare of farmers and communities.

Law firm Slater and Gordon is investigating a potential class action on behalf of investors.

A focus of the investigation will be whether the dairy co-operative misled investors in its profit forecast in the product disclosure statement it released last July or the revised forecast issued in February.

Last week managing director Gary Helou and chief financial officer Brad Hingle resigned, while on Tuesday it was announced board member Max Jelbart was stepping down for health reasons.