Milk powder prices fall for a second month

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The price of whole milk powder fell for a second month in Fonterra Cooperative Group's online trading auction amid expectations of increased output from northern hemisphere producers.

The average price for whole milk powder fell 1.6% to US$3,256 a tonne, according to the globalDairyTrade website managed by CRA International.The price of anhydrous milk fat dropped 7.9% to US$4,183 a tonne.

"This result is positive given that over the last month dairy prices have been under pressure in Europe and the US," said Paul Grave, globalDairyTrade manager. Prices are still high by historical standards, he said.

The price decline in consistent with the ANZ Commodity Price Index, released yesterday, which showed dairy prices dropped 2% in January while most other New Zealand commodities gained.