Mike Maley, of South Otago Grain, said there could be concern for some recently established farmers, but he hoped most had put something away after last year's boom prices.
''The country relies on it so much now for income. There are so many people associated with it down the line, whether you're an electrician or [supplying] stock food.''
Clutha Mayor Bryan Cadogan called Fonterra's forecast price a ''moving target'' but said there would be pressure on farms if the payout were to drop below the forecast $5.55 to $5.65.
''These are only indications and though all indications are heading in the wrong direction, our district is pretty conservative for dairy; we're not out there on the spike,'' he said.
Gore Mayor Tracy Hicks said while the news would be disappointing for farmers, the vast majority of farms in Gore would ''carry on'' because of the commitment that had already been made to the industry in the area.
''There's still a lot of milk to be produced and cows to feed and all the things that go with dairy farming,'' he said.
Bruce Graham, manager at Duffy Engineering, said it was probably mixed news for businesses tied to dairying, with farmers ''repairing rather than replacing''.
''They won't want to have bigger capital outlays than they can get away with, so fix it this year and see what it's like next year,'' Mr Graham said.
He said Duffy had a case earlier this week when a farmer anticipating low payouts ''spent quite a bit of money repairing a silage feeder to get another couple of years out of it''. Mr Maley said forecasts had come in low in the past.
A drop in the dollar, or changes in the global picture, could have a dramatic impact.
''This is only one year. We'll get through this one and look at the next one,'' he said.
