Warnings to dairy farmers that financial challenges will continue -- as the Chinese market isn't expected to re-balance in the short-term

However Rabobank's latest Global Dairy Quarterly report makes it clear the pain won't last forever.

It says there's a possibility a demand resurgence could emerge well before milk output can recover -- due to lower global prices stemming supply growth in key dairy production regions.

Report co-author, Emma Higgins, says there's no doubt farmers are being challenged -- with low forecast milk prices, below production costs for many.

She says the difficult conditions will linger for this season -- and possibly the start of the next.