It looked like bad news on the 10th anniversary of Fonterra's Global Dairy Trade Auction, with a 5.0 per cent slump overnight and Whole Milk Powder plunging 7.3 per cent.
However, Fonterra's COO Farm Source Miles Hurrell says it's not all bad news when he spoke to The Country's Jamie Mackay.
Although Hurrell admits the result was "not a great start," he see a silver lining, as he expects renewed interest from buyers at these levels, and an insulating effect from a falling exchange rate.
Hurrell also says Fonterra is sticking to its predicted $7 milk price payout for its farmers.
"I'm not concerned around the drop we saw over night, down five per cent because ... the New Zealand dollar's dropped five or six per cent only in the last couple of weeks ... so from New Zealand dollar payout to farmers, we're still fine at this point."