Average farmgate milk prices in the UK fell by 0.51p/litre (USÂ¢0.79/litre), a drop of 2.1% between January and February, while commodity milk prices surge this month, according to the Department for Environment Food and Rural Affairs (DEFRA).
In February, farmgate prices stood at 24.16p/litre (USÂ¢27.46/litre), a dip of 0.52p/litre (USÂ¢0.81/litre) from the same time a year ago.
However, commodity prices are on the rise, and Northern Ireland's latest United Dairy Farmers auction saw 45 million litres of milk average 25.63p/litre (USÂ¢39.74/litre) for April delivery - 2.31p/litre (USÂ¢3.58/litre) higher than in March and 6.8p/litre (USÂ¢10.54/litre) above a year ago.
"The auction produced yet another record-breaking result with the highest March price in the past 10 years, by a substantial margin," said the report.
World wholesale prices are also improving, with Fonterra's latest auction seeing price rises of at least 21% between March and April, and whole milk powder reaching the highest level since July 2008.