Fonterra's $6.75/kg milk price forecast remains under downward pressure after product prices fell by 3.5 per cent at the latest GlobalDairyTrade auction, but economists said the sharp fall in the New Zealand dollar over the last fortnight was cushioning the effect.
Whole milk powder prices, the most important driver of the co-op's forecast, fell by 5.5 per cent to US$2852 a tonne - their third decline in a row.
Fonterra's Head of Farm Source for the Canterbury region Charles Fergusson spoke to The Country's Jamie Mackay about the latest auction result saying it's too early to panic about drop in dairy prices and he says his region is now enjoying a 'growthy' spring.
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