Dairy product prices declined at the Global Dairy Trade auction, as whole milk powder and butter fell amid expectations of ample supply.

The GDT price index dropped 3.6 per cent from the previous auction two weeks ago and whole milk powder fell 2.1 per cent.

Fonterra's Chief Operating Officer of Global Operations Rob Spurway spoke to The Country's Jamie Mackay saying he was disappointed with the result but there was still good news to be found.

Listen below:

"There were some highlights in the GDT auction," says Spurway who points out that rennet casein was up 2.8 per cent.

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Mackay asks if Fonterra will stick with its $7 forecast payout for the coming season.

"It's more complex than that. We have to look at the 12 month period [and] there are a number of considerations," says Spurway who mentions global influences such as supply out of Europe, demand out of China and changes in the foreign exchange.

The Chinese market remains strong with more than half the volume of last night's auction bought by Chinese buyers which is a "pretty positive sign," says Spurway, although Fonterra is keeping an eye on the looming Trade War with the US.