A better outlook than anticipated for dairy farmers

Dairy NZ's September revenue forecast has ticked up to 8.84 dollars per kilogram of milk solids with a break even of 8.09 dollars.

It's a favourable hike on the previous, more challenging period - driven largely by improved farmgate milk prices and declining interest rates.

Head of Economics Mark Storey says the forecast looks good and he hopes interest rates will continue to track down.

But he says there's always an element of uncertainty.

Storey says the forecast is incumbent on the trends we're seeing continuing.