Dairy farmers have plenty to be positive about, despite the recent drop in global dairy prices

Overall prices are down 3.6 percent at the latest auction overnight.

The all-important whole milk powder price is down 4.4 percent, while the skim milk powder price has dropped 4.2 percent.

But The Country's Rowena Duncum says despite the challenging global conditions, the forecast farmgate milk price is still at a record high.

She says while the drop isn't ideal, the situation could be a lot worse.