The Minister said he supports the principle of a temporary levy.
"If retailers get to a point where they support a 10c levy on each litre of milk to go directly to farmers, I am happy to try and help to facilitate it as a temporary measure while structural reform happens in the industry," Minister Littleproud said.
"The dairy sector in particular is having a tough time; many of our farmers are being paid less than the cost of production. This is unsustainable. If our farmers don't make it through the tough times, they won't be there to supply Australia milk in the future," he said.
The Agriculture Minister said the fact is $1 milk has devalued milk in the eyes of consumers by making it cheaper than water.
"I've met with the two big supermark...