Commodity prices have taken another dive, with falls in dairy prices leading the way.
The ANZ Commodity Price Index dropped 4.7 percent in May, with commodities 18 percent lower when compared to the same month last year.
Dairy product prices dropped 8.2 percent in May from April.
When compared to May last year, dairy prices were 36 percent lower.
ANZ said declining prices would put pressure on cash flows and expenditure in the dairy sector, which would weigh on this year's economic activity.
Commodity prices fell 7.4 percent in April - the biggest monthly drop since the financial crisis, with dairy product prices leading the decline.
Commodity prices have fallen for 11 months in a row and the lower dollar is expected to help exporters in the coming months.
New Zealand's commodity prices fell 1.3 percent in September - the seventh month in a row. Dairy led the fall with 14 percent lower but beef jumped 10 percent.
The New Zealand dollar gained about half a cent against the US dollar in afternoon trading today, but is expected to come under pressure in the global dairy trade auction overnight.
Global commodity prices for the country's exports have fallen for the sixth successive month. The commodity price index declined by 3.3% in August, from the previous month.
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