Industry body Dairy NZ is urging farmers to stay positive and weather the storm in the light of this week's further drop in prices.
At the global dairy trade auction earlier this week, the average price dropped by 7.3 percent and benchmark whole milk powder prices by 10 percent.
Dairy NZ's general manager of policy and advocacy, Kimberly Crewther, said although it is a real blow for farmers, she is confident there is better news on the horizon.
"There's a cyclical phenomenon and over the long term, over the next 10-year period, we're still looking at very strong demand in the international markets, and so a trend for prices to come up once again and to be at strong levels like we've seen in the last couple of years.
"It's difficult to predict - what we're seeing is the effects of good weather and global exporting geographies. Over the next few months, New Zealand and Australia will be entering the summer period and Europe will be entering into winter, and it will depend a great deal on what the weather conditions are."
In contrast, wool prices have gained more ground.
Exporter New Zealand Wool Services International said prices at yesterday's North Island sale reached higher levels than expected, helped by a lower dollar and continuing demand from China.
Compared with the last North Island sale, fine cross-bred wool prices rose by up to seven percent and some early shorn and second shear wools fetched nine and 12 percent more.
