Dairy prices dropped significantly overnight, plunging 8.4 percent on average at the Global Dairy Trade auction.
It follows a fall of 8.9 percent in the price a fortnight ago. Prices are now 41 percent lower than in February, and are back where they were exactly two years ago.
READ: Di White’s feature ‘Changing life on the farm’, on the challenges faced in agriculture.
Benchmark whole milk powder prices dropped by 11.5 percent to $US2,725 a tonne.
But the price of milk fat rose 6 percent, to $US3,457 a tonne. Volume traded increased to 48,380 tonnes.
Farmers will be hoping the New Zealand dollar will continue to fall in order to offset the price drop. It's now sitting just over 84.6 US cents compared with 88 cents a week ago.
Photo: Unknown
Federated Farmers' Dairy spokesperson, Andrew Hoggard told Radio New Zealand's Morning Report programme there's still hope the global dairy trade will turn around in the near future in the mean time farmers will have to cope.