Milk powder prices have plunged dramatically at the latest Global Dairy Trade, with skim milk powder and whole milk powder taking the biggest hits.
The latest Global Dairy Trade auction revealed a 6.3 per cent drop for the GDT Price Index a further decrease of 3.1 per cent of the last auction of February 21.
Skim milk powder was down 15.5 per cent, while the value for whole milk powder dropped by 12.4 per cent.
The plummet in prices is a result of the announcement made by Kiwi dairy giant Fonterra.
The company stated that it will be increasing the volumes on product it trades on the GDT as a result of increased milk production in New Zealand due to ideal weather conditions in recent weeks.
Weather conditions have been favourable for production in recent weeks with rainy conditions in most parts of the country.
New Zealand are also approaching Autumn which will also favour production.