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 US$2,787 a metric tonne from US$3,042 a tonne two weeks ago. Whole milk powder, the biggest product by volume, fell 4.1 per cent to US$2,760 a tonne and skim milk powder fell 9.8 per cent to US$2,599 a tonne.
See more auction details here.
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, as Europe's debt crisis weighed on global prices. 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.