CHALLENGE Dairy Co-operative executive officer Larry Brennen did not agree with the Dairy WA survey's finding that there was only room for two processors in WA.
"There has got to be a 45-50pc drop in production for a milk shortage to occur," Mr Brennen said.
"This is highly unlikely to occur in the near future."
He said Challenge's milk production was up 4.5pc on volume this year compared to last.
"I firmly believe (WA processors) have got enough milk for this summer."
He said the negativity in the industry was of serious concern and was having a detrimental effect on a lot of good people.
Mr Brennen said WA had 270 of the best dairy farmers in the world.
Australian Dairy Farmers president Allan Burgess has met with WA dairy farmers to discuss the negativity within the industry.
WAFarmers dairy section president Tony Pratico said he understood that too much negativity was bad, but dairy farmers needed something to be positive about.
"We're not whingeing," Mr Pratico said.
"Where the negativity occurs is where the processors are unable to manage and live with the competition and are not prepared to make changes."
Mr Pratico said the industry should focus on attracting farmers into the industry and not on whether negativity was occurring or not.
He said he had no reason to question the survey, as it was completed by an independent survey body.