Dairy prices have fallen for the third consecutive time in Fonterra's fortnightly online global auction.
The dairy cooperative's global dairy trade index fell 5.1% on Wednesday to an average selling price of $US3796 a metric tonne.
At the previous auction two weeks ago, the index was 6.7% down. Prices have fallen about 20% since March.
BNZ economist Doug Steel says dairy prices have fallen 20% since March and have clearly passed their peak. However, he says they are still 12% higher than this time last year and more than 18% higher than the long-term average.
In Wednesday's auction, anhydrous milk fat, used in the manufacture of ice cream, confectionery and baking products, recorded the greatest fall of 12.5%.
Cheddar traded for the first time in the global dairy auction and achieved an average price of $US4315 per tonne.
