Article: Fonterra nets 14% less in milk powder auction prices

World dairy prices are continuing to fall with Fonterra's latest auction netting prices 14 per cent less than a month ago. The co- operative's global dairy trade auction - which concluded yesterday - achieved an average price across all products and contract periods for whole milk powder of US$2223 (NZ$4200) per tonne.

"The current economic crisis has resulted in a significant drop in the demand for dairy commodities, and a continued decline in prices was expected," Fonterra's commercial director of global trade Guy Roper said. "There will continue to be downward pressure on prices until either the supply of product declines or buyers have confidence that the global economic situation will ...

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