Australian supermarket chains, diary processors and dairy farmer groups should introduce a temporary levy for the next 12 months, according to Nationals MP David Gillespie.
Dr Gillespie says a 10-cent-a-litre levy is needed while structural reforms are under way to establish a more viable diary industry supply chain.
Should the industry "fail to take action" and bring such a levy in, the NSW MP says he will introduce a private member's bill to try and make it happen himself.
The push comes as Dr Gillespie says the dairy farmers in his electorate need help to remain viable, now and into the future.
"There is action being taken now, and I thank my colleague (Agriculture Minister) David Littleproud for his engagement with the industry and pressing ahead with new measures, but these will take time to work through," Dr Gillespie said.
"Dairy farmers can no longer wait, and that is why I am seeking to provide immediate confidence and certainty for producers."
The Nationals MP will invite representatives of the major supermarkets and processors to discuss a temporary 12-month levy.
"Of the top three supermarket chains, Woolworths has been ahead of Coles and Aldi in terms of implementing measures to address the viability of the dairy supply chain, however, it is simply not enough."
Australian Associated Press