Fonterra milk price cut drives down NZ dollar

International milk prices slipped in the second auction held this month by New Zealand’s Fonterra Co-operative Group, the world’s biggest dairy exporter, an outcome that knocked the New Zealand dollar lower.

Fonterra’s GDT Price Index dipped 3.1% to an average selling price of $2,735 (€2,450) per tonne, the first decline following four consecutive increases that drove the index up 62.8%.

Prices for whole milk powder dropped 4.6%.