A Tasmanian dairy farming giant has blamed low milk prices for its multi-million dollar loss last year.

Van Diemens Land Company, which owns the Woolnorth dairy farm in Tasmania's north west, recorded a loss of about $9 million for the financial year to June.

Its New Zealand parent company, Tasman Farms, has announced a similar loss.

VDL chief executive Michael Guerin says dry conditions, low values for stock, and poor milk prices were to blame.

"It was a very tough year," he said.

Mark Smith from industry group Dairy Tas says about half of Tasmania's dairy farms struggled to break even last year.

"That's not a surprising position really," he said.

VDL is currently seeking investors to expand its Woolnorth farm.

Mr Guerin says the industry is expected to pick up this financial year.

Last month there were reports the state-owned China Investment Corporation and New Zealand dairy giant Fonterra were negotiating to buy VDL under a proposed $200 million deal.

The company says discussions are continuing with a number of investors.