Global dairy prices plunged by 7.4 percent overnight at the Global Dairy Trade auction.
Whole Milk Powder - a key driver for Fonterra's prices - dropped 10.9 percent, the lowest level in nearly 5 years.
Dairy NZ director Jacqueline Rowarth says this decline is partially led by softening demand from China amid Covid-19 restrictions.
"This has been a game that has been played before, it's very difficult to tell what's going on in China. We love them as a market, but in terms of customers, it can be very challenging."
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com