Warrnambool Cheese and Butter isn't the right investment for Murray Goulburn, according to supplier Steve Stead.

Mr Stead, a dairy farmer from Maffra in eastern Victoria, said there's something wrong internally if the company can't provide a better return to farmers when dairy commodity prices have strengthened in recent times.

"We've had a 50 or 40 per cent increase in dairy commodity prices for a good period now [since the global financial crisis] and we haven't seen any significant lift in our payout," he said.

"There must be something wrong within the business that's not delivering."

Mr Stead said examples of this are factories that aren't working to capacity, potentially having the wrong contracts in place, or not having access to the best markets.

He also questioned the board's structure and business skills.

"I don't believe the board within Murray Goulburn has the correct structure or business acumen to be making the right decisions for the business or the industry going forward," he said.

"We don't need farmers on the board; we need people who specialise in growing the footprint in overseas markets and people who are au-fait with that level of performance."

According to Mr Stead, buying WCB and therefore its supplier base is risky, because in five years time that supplier base that made the company attractive could jump ship, leaving MG with the debt.

Mr Stead believed MG's money would be better spent making the company more efficient, including looking at investments in New Zealand.