Fonterra has cut its milk price forecast to $3.85 per kilogram of milk solids, down from $5.25.

Stuff reports this decision will wipe $2.5 billion off the economy.

In light of the cuts, the dairy giant has announced it will provide an estimated $430 million in financial support for farmers to help them cope with the low payout.

DairyNZ chief executive Tim Mackle says the news was grim, but not unexpected and many farmers would now be in survival mode.

The drop in milk price would result in $2.5 billion dropping out of rural economies, says Tim.

'Milk price is now half what it was in 2013/14. We calculate around nine out of 10 farmers will need to take on extra debt to keep going through some major operating losses.

'For the average farmer you are looking at covering a business loss of $260,000 to 280,000 this season but for many it will be a lot more than that."

It would have a big impact on rural servicing businesses. Drops like this had a cascading effect through rural economies, says Tim.

In light of the announcement, SunLive asked people in the community what industry they thought would best benefit the country and why?

Watch the video above to see what people said.