The latest weather predictions look great for dairy farmers across the nation.
The National Institute of Water and Atmospheric Research has released its report on the next quarter and says predicted high temperatures and dry rivers will be avoided.
Dairy Exporter editor Glenys Christian says this comes after a booming, record production season for the dairy industry in 2012.
She says before Christmas, milk flows were already two percent up on the previous year.
"This news means that it's entirely possible that two percent margin may remain and that would be very good news indeed for Fonterra."
Ms Christian says this won't have a direct effect on milk prices but it will mean that New Zealand has more milk to sell in overseas markets.
