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Dairy product prices fall 5.9 per cent

06:23 AEST Wed Jul 4 2012
Dairy prices have fallen 5.9 per cent in Fonterra's latest online auction
Image: Getty

Prices of dairy products fell in Fonterra's latest GlobalDairyTrade auction, mirroring a broader decline in New Zealand's primary sector exports in the face of doubts about the strength of the world's economic recovery.

The GDT-TWI Price Index fell 5.9 per cent compared to the last sale in June.

The average winning price dropped to $US2,787 ($NZ3,470) a metric tonne from $US3,042 ($NZ3,787) a tonne two weeks ago.

Whole milk powder, the biggest product by volume, fell 4.1 per cent to $US2,760 ($NZ3,436) a tonne and skim milk powder fell 9.8 per cent to $US2,599 ($NZ3,236) a tonne.

The sale comes a day after figures showed the ANZ Commodity Price Index, which measures a basket of New Zealand export commodities, fell to the lowest level in more than two years in June.

Dairy prices fell to a 33-month low, led by whole milk powder, the ANZ index showed. Exporters are also feeling the impact of a kiwi dollar that has risen back above 80 US cents.

The total volume sold rose to 38,066 tonnes from 25,606 tonnes in the previous auction.