Dairy product prices fell for the ninth time out of 12 events, but Charles Fergusson says New Zealand shouldn't give up on the Global Dairy Trade auction format just yet.

"The auction is still a really great indicator of what farmers should be paid for their milk," Fonterra's Head of Farm Source for Canterbury, Marlborough and Tasman told The Country's Rowena Duncum.

Read more: Dairy product prices down at GDT

"What we need to remember is that the auction format has created incredible price transparency for the dairy farms of New Zealand over a number of years. The Fonterra milk price is globally competitive."

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Although the GDT price index fell 1.3 per cent and whole milk powder declined 1.8 per cent, Fergusson is encouraging people to look at the big picture.

"Obviously we would've liked prices to go up ... but it's really important for farmers and New Zealand to look at Fonterra's milk price over the entire season."

Also in today's interview: Charles Fergusson discusses whether lower commodity prices will affect the dividend and how Fonterra's farmer meetings are going after last week's Annual Report.