Prices took a nosedive in the latest Global Dairy Trade auction held overnight, with a 6.9% drop across the board.
It is the largest fall since August and dramatically follows a modest 0.5% dip from two weeks ago.
Whole milk powder, which has the biggest impact on Fonterra’s farmgate milk price, fell 4.3% to an average of US$3218/MT.
Skim milk powder, Fonterra’s second-biggest reference product, fared worse, plunging 6.1% to an average of US$2586/MT.
Cheddar also tanked — down 6.9% to an average of US$3980/MT.