The country's second biggest dairy co-operative, Westland Milk products has released its opening milk price forecast for the new season starting in June.
It has set a price range of $5.60 to $6 a kilo for milk solids, which is higher than the current season's payout, which stands at $4.90 to $5.10.
Westland's Chief Executive Rod Quin said while it expected dairy prices to recover next season, they were still expected to remain relatively low due to ongoing milk supply pressure from the United States and the European Union.
He said one bright spot was that demand from Chinese whole milk powder buyers was expected to lift early next year.
The biggest dairy company, Fonterra was also due to announce its opening milk price for the new season tomorrow. It recently reduced its payout for the current season to $4.50 a kilo, in response to the continuing fall in world milk powder prices.