17 Oct 2018

Dairy prices slip to lowest level in two years

7:33 am on 17 October 2018

Dairy prices have fallen fractionally to the lowest level in two years in the latest global auction.

Brighter Future - Dairy. Dairy farming family the Mathieson's, Ewen, Dianne and Melissa talk about the boom and bust of their industry since 2008 and how they got through some of the tougher times.

Photo: RNZ / Rebekah Parsons-King

The average price was down 0.3 percent to $US2885 a tonne, and follows a fall of just under 2 percent in the previous auction.

The price of whole milk powder, a key factor in setting returns to local farmers, fell nearly 1 percent to $US 2768 a tonne.

The volumes sold were marginally lower.

Fonterra last week cut its forecast payout for the current season by up to 50 cents to between $6.25 and $6.50 per kilo of milk solids.

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