International milk prices have dropped for the fifth time in a row at Fonterra's fortnightly auction to hit a 14 month low.
Fonterra's Global Dairy Trade index dropped 2.6 percent, with an average selling price of $US4,047 a tonne.
The volume sold fell from nearly 40,000 tonnes at the previous sale to 36,549 tonnes overnight on Tuesday.
Milk protein concentrate fell by 7 percent and benchmark whole milk powder prices dropped nearly 1.6 percent
Butter prices fell by 4.9 percent, Rennet Casein by 4.3 percent and butter milk powder prices by 8.6 percent.
Bank of New Zealand economist, Doug Steel, says prices have dropped almost 20 percent since February.
He says the fall in dairy prices is being driven more by supply than by changes in demand.
