Dairy farmers are being urged to prepare for the reality of the drop in milk prices as a tough season looms ahead.

Dairy NZ says 2015-16 will still probably end up being a break-even year for most farmers, but cashflow will be a major issue.

Chief executive Tim Mackle says that could result in some increased term debt in the sector and less spending in the regions.

"Resilience is needed here. The farmers can effectively cope with the drop in milk prices we're seeing after of course the record time that we had in 13/14."

Dairy NZ is holding a series of Tactics for Tight Times seminars around the country, helping farmers understand how low their own cashflows might go for the 2015-16 season.

Mackle acknowledges group mentality is one of the defining features of New Zealand's dairy industry.

"Of course that's one of the big hallmarks of our dairy industry is farmers helping other farmers. That's really one of the central tenants to why we've become so competitive over the years so we're harnessing that."