In a bid to help dairy farmers cope with the effects of industry deregulation, Australian agricultural minister Warren Truss has announced that nearly $A170,000 will be spent on counselling services.

Part of the second round of funding announced by the government, the money is from a A$3m nest egg established to fund thirteen projects to "create jobs and provide economic and social benefits to local dairy communities."

"The projects announced today demonstrate that the federal government is meeting its responsibilities in ensuring that dairy communities are able to look to their future with confidence," added Truss.

Other projects include granting A$550,000 to fund a 80km pump in the Broke Frodwich Private Irrigation District and expanding the yoghurt and fresh milk production in South Australia's BD Farm Paris Creek Pty with A$330,000. A total of A$16,500 will go to the Great Southern Development Commission in Western Australia to fund research into a milk powder processing plant.

The potential for goat's milk production meanwhile will be analysed by the Circular Head Council in Tasmania with a grant of A$33,000.