Westpac economists still expect a "bumper" season for New Zealand dairy production, despite the first GlobalDairyTrade (GDT) auction for 2013/14 starting on a soft note.
Dairy product prices fell for the third auction in a row at the overnight GlobalDairyTrade (GDT) auction, with the The GDT-TWI Price Index falling by 5.3 per cent compared to the last sale two weeks ago. The average winning price fell to US$4,443 a tonne from US$4,549 a tonne.
Whole milk powder, the biggest product by volume and the most important category for New Zealand producers, fell by 7.1 per cent to US$4,643 a tonne.
Fonterra last month raised its forecast 2013/2014 farmgate milk price to $7.00 per kg of milksolids, up $1.20 per kg for the season just ended.