The state's three remaining milk processors, Harvey Fresh, Fonterra and National Foods have come to the rescue of south-west farmers hit by the recent collapse of Challenge Dairy Co-operative and Challenge Australian Dairy.
Last week, Challenge Dairy Co-operative went into voluntary administration.
Challenge Australian Dairy ceased trading in October, and last week closed its Boyanup operation.
Challenge Australian Dairy is jointly owned by Challenge Dairy Cooperative (51 per cent) and Singapore company QAF Ltd (49 per cent).
Agriculture Minister Terry Redman said that Fonterra and Harvey Fresh have acted to support farmers.
He said that Harvey Fresh has taken up extra milk and provided security to a number of Challenge suppliers.
Fonterra has now advised it will offer contracts to all remaining dairy farmers that have yet to sign new contracts with Harvey Fresh or National Foods, he said.
"Many dairy farmers have been faced with the prospect of not being able to find a home for their milk, so the actions of Fonterra and Harvey Fresh will come as welcome relief," Mr Redman said.
"I have appreciated the open and supportive relationship between my office and Fonterra throughout this crisis, and I am very grateful for the valuable role the company has played in helping WA dairy farmers endure these current challenges," he said.
The WA Farmers Federation also welcomed the support of the major dairy companies.
"Challenge Dairy Cooperative had to cease collecting milk because they were unable to meet their financial obligations to their suppliers," said WAFarmers dairy section president Peter Evans,
"National Foods, Fonterra and Harvey Fresh have stepped in to support Challenge Dairy suppliers
by collecting their milk.
"The fact that all former Challenge suppliers can now have their milk collected is a credit to the other three processors," he said.
The Department of Agriculture and Food is working closely with Dairy Australia and Western Dairy to deliver 'Taking Stock' sessions to Challenge Dairy Co-operative members now renegotiating new supply contracts with other dairy processors.
