The major supermarket chains currently gobble up about 80 per cent of profits in the milk industry, forcing the other supply chain stakeholders to scramble for the remaining 20 per cent.

And while a Senate Inquiry into the industry made 16 recommendations that, if implemented, would help rebalance market power and improve transparency and fairness in price negotiations, the Federal Government is yet to implement them.

QDO president Brian Tessmann said the dairy industry would immediately lobby a newly-announced Federal Government to act on the recommendations.

"A government that is serious about a national food plan should be ensuring that farmers are receiving sustainable prices for their work, investment and risks taken," he said.

Mr Tessmann said farmers were under pressure from the retailers, who sought to continually place downward pressure on milk prices, brought about by their 'home' brand milk procurement and marketing strategies.

"The retailing end has the smallest risk of investment per litre and highest profit per litre while at the farming end has the highest risk of investment per litre and the lowest profit.

"And that's a problem," he said.

"At the moment, many dairy farmers are doing the numbers on their costs and the prices they get for their milk - and we have a situation where some are questioning whether it's worth slogging it out."

He said that if Australia was serious about a national food plan, the government should be ensuring farmers received sustainable prices for their work.

"The consumer has to realise they have to pay a price that will guarantee the supply of milk into the future," he said.

"If they don't pay enough they won't be able to keep getting Queensland milk and the milk will come from somewhere else and it will cost more - so they will lose in the long run."