Northland dairy farmers are cautiously optimistic international dairy prices will bounce back - but not any time soon.
Dairy prices surged sharply higher for the third time in a row at the latest Global Dairy Trade (GDT) auction last week, rising by 16.5 per cent since the last sale early this month.
Whole milk powder prices jumped by 20.6 per cent to an average US$2495 ($3900) a tonne. They have rallied by 56.9 per cent since a record low of US$1590 in mid-August.
However, they have a long way to go before Fonterra's $3.85 per kg of milksolids forecast, which rests on wholemilk powder prices reaching US$3000 a tonne next year, can be realised.
Federated Farmers' Northland dairy chairman Ashley Cullen said continued price recovery was the key.