Australians are being urged to "eat more cheese" to help dairy farmers survive drastic milk price cuts that some fear could send them broke.

In what he has called the "greatest call to arms I have ever made", prominent TV host Waleed Aly has made an impassioned plea for shoppers to stump up a few cents more for Australian-made brand-name cheese and milk to help save farmers from financial ruin.

"Dairy farmers are begging us to eat more locally produced cheese," he said on Tuesday night's The Project.

"And the good news is, thanks to data released last week by the bureau of statistics, nine out of 10 of us aren't eating enough dairy produce to meet the dietary guidelines ... so chow down."

"Farmers have told us that the best way to lend them a hand is to pay an extra few cents for Australian-produced, brand name milk. It really will help our farmers stay afloat."

In the past month, Australia's two biggest dairy companies, Murray Goulburn and Fonterra retrospectively slashed farmgate milk prices, fanning fears that many local dairy farmers will go broke.

"Because our farmers have been paid $5.60 all financial year, Murray Goulburn and Fonterra are essentially claiming that the farmers were overpaid from July last year until the price cuts three weeks ago," Aly said on the program.

"Now, the farmers suddenly owe Murray Goulburn and Fonterra massive debts. The average debt reportedly owed to Murray Goulburn by a dairy farmer is $120,000."

He went on to condemn the lack of political action to help struggling dairy farmers, who have begun pressing for a "milk levy" of 50¢ a litre.

"That levy would cost Aussie families less than a dollar a week, and it could save lives and potentially an entire industry," Aly said.

"Our pollies just don't want to introduce a milk tax in the middle of an election campaign.

"I don't believe Australians ... would have the attitude that there's no point buying the cow when you can get the milk for free."

smh.com.au