Australian Dairy Farmers board member and former United Dairyfarmers of Victoria president Tyran Jones said farmers recognised cost pressures processors were facing from Russian trade sanctions and China retreating from the global dairy market. "We are all mindful of … the reduction in demand and increase [in production] from the US, Europe and others," Mr Jones said. "It is well understood that there are pressures in the market but by the same token we do live in a high cost economy "The high cost of inputs doesn't go down, the cost of wages doesn't go down. We have got to be able to support a business in the Australian economy." Murray Goulburn set the price for this season, opening with $5.60 in June. Fonterra chief executive Theo Spierings said this was too high, given the global volatility, and called for "an honest debate about what is being earned in the market".