Prime Minister Malcolm Turnbull and his deputy Barnaby Joyce will meet the board of dairy giant Murray Goulburn on Tuesday as a crisis continues to unfold across the industry.

The Government is also considering a Senate inquiry into the issue, with some producers selling their cows for slaughter and walking off their farms.

Government sources said it would be a “please explain”-type meeting, with questions expected to be raised about the events leading up to the shock price cut in April, and why the company is seeking to claw back money from producers.

Support for affected dairy farmers is also set to be raised in this afternoon’s meeting.

Murray Goulburn retrospectively cut the price it paid to farmers and required them to pay back the difference, affecting around 2500 producers who owe an estimated $200 million.

On Monday night, Four Corners revealed that emails to senior executives showed that Murray Goulburn was making significant losses long before it downgraded its milk price.

There are growing fears about the impact of the cut, with many producers warning they will walk away from the industry.

The meeting was promised by Malcolm Turnbull during the federal election campaign. Photo: AAP

Discussions have also been held within the Coalition about setting up a Senate inquiry into the issue, although a final decision is yet to be made by the Government.

Today’s meeting was first promised by Mr Turnbull during the federal election campaign, and comes ahead of a dairy symposium being planned next week with the wider dairy industry.

Murray Goulburn’s decision also had widespread ramifications across the industry, with Fonterra cutting the price it paid to dairy farmers.

Adam Jenkins, the president of the United Dairyfarmers of Victoria, said farmers wanted the Government to push for answers from senior management at the dairy cooperative.

“It’s certainly something that we didn’t need right now when we were looking at growth and opportunities into the key markets as they recover,” he told AM.

“It’d be great for the Prime Minister to take that message on board.

“We fundamentally do not want this situation to ever happen again.”

Struggling farmers apply for loans

The Government also promised $555 million in concessional loans to Fonterra and Murray Goulburn producers during the election campaign.

A spokesman for Mr Joyce said one loan has been approved, and 48 other applications were still under review.

Mr Jenkins said he would encourage farmers who are struggling to apply for help.

“People have actually said [the loans] are very difficult to get, we’re saying if you’ve actually tried and you can’t get through they need to contact their state or federal politician or even us,” he said.

“Now that’s not saying they’ll get through the system but we’d encourage people to get involved and go through the system.”

—ABC