The Australian Dairy Situation Analysis report aims to help prepare farmers, processors and the wider dairy community for discussions at over 20 workshops across the country beginning next week.

The report was produced by Australian Dairy Plan and partners which include Dairy Australia, Australian Dairy Farmers, Australian Dairy Products Federation and Gardiner Dairy Foundation.

The report provides an overview of key issues and conditions across a range of metrics including farm profitability, milk production and global competitive position.

Australian Dairy Plan Independent Chair John Brumby said the report provides a "snapshot" of the current state of the industry in Australia.

"While flagging many positive factors for the industry that point toward a positive future, the report also provides an honest assessment of challenges that we hope will be addressed during the course of the consultations," he said.

The workshops will be held across the country during May and June, including Bega on Wednesday, May 15.

Mr Brumby said a combination of market volatility, challenging conditions on farms and a breakdown in trust between farmers and processors has changed the industry over the last decade.

"It is vital that all sides now pull together to agree a roadmap of priorities and actions, in order to reset the direction and confidence of the industry," he said.

"In my view, the challenges we face today are bigger and more complex than the industry has faced before.

"If we are to write the next chapter of dairy's story, we not only need to be honest about the issues we face, but also open to taking difficult decisions and supporting radical change if required."