Although the golden run of the Global Dairy Trade Auction came to an end overnight, it's not all bad news says Emma Higgins.

The GDT price index fell 1.2 per cent from the previous auction two weeks ago, and whole milk powder (WMP) dropped 2.1 per cent to US$3,180 a tonne.

It was the first time dairy product prices dropped, after 11 positive events.

Rabobank dairy analyst Higgins told The Country's Rowena Duncum there was positivity to be found in a rise for skim milk powder, albeit a "small lift" of about half a per cent.


"This is actually a really good result given that the volumes on offer for this GDT event had actually lifted about 17 per cent from prior forecasts and also the last GDT event" said Higgins.

Listen below:

A drop in WMP was not entirely surprising, given the strong import activity from China in recent months.

Higgins said Rabobank was expecting China's import growth to seasonally slow, and that their inventory pipelines were full.

"We're expecting Chinese buying to pick up again more significantly in the back half of 2019" said Higgins.

"Seasonally we are moving into our hiatus in terms of New Zealand production and so certainly any major movements for the GDT over the next few auctions will come down the urgency of buyers looking to procure product in the short term."

Also in today's interview: Higgins looks at how a weak Kiwi dollar can affect milk price.