Business

Dairy price index drops latest auction

08:50 am on 5 November 2014

Fonterra's dairy price index dropped by 0.3 percent in last night's latest Global Dairy Trade auction.

The average price rose by nine dollars to $US2,649 per metric tonne.

The volume traded fell by more than 5000 tonnes to 45,499 tonnes.

The key price for Fonterra, whole milk powder, rose slightly to just over $US2,500.

Fonterra has said the price needs to rise to about $US3,500 by March next year if it was to maintain its forecast payout to farmers of $5.30 per kilo of milk solids.