Despite a small lift in international dairy prices, supply was still outweighing demand and the road to price recovery will be a long one, say market analysts AgriHQ.
In the global dairy trade auction overnight, the price for the key commodity, whole milk powder rose just over 5 percent to $US2260 a tonne.
It was the first rise since October, but the price is still a long way from $3000 a tonne which many farmers need to break even.
The overall price index rose almost 4 percent to $US2419, and butter and skim milk powder gained a small lift.
Dairy analyst Susan Kilsby said dairy commodity prices for the remainder of the season were looking stronger, but market fundamentals still remained weak due to the volume of milk that was being produced around the world.
Ms Kilsby said whole milk powder prices were expected to lift to $US2700 dollars a tonne by July next year.