2 Aug 2010

Sharp fall in dairy prices

7:36 pm on 2 August 2010

A sharp fall in dairy prices has led to a decline in returns for farmers and other commodity producers.

The ANZ Bank Commodity Price Index declined 0.8% in July - the second successive month of falls.

Whole milk powder slumped 13%, while skim milk powder, beef, sawn timber, butter and log prices were also down.

Skins, seafood, kiwifruit, wool and aluminium rose.

ANZ economist Steve Edwards says the large fall in dairy has distorted what is otherwise a healthy lift in several commodities.