Emma Higgins says the drop in the latest Global Dairy Trade auction is a result of global markets and surprisingly good weather.
Rabobank's dairy analyst spoke to The Country's Rowena Duncum about the auction, where the price index fell 1.3 per cent and whole milk powder declined 1.8 per cent.
Read more: Dairy product prices down at GDT
"The general sentiment in global markets at this point in time remain quite bearish," says Higgins, who notes that increased volumes in whole milk powder has kept buyers on the sidelines.
This, coupled with near-perfect winter and spring weather (so far) has created a solid platform for a good milking season ahead. Higgins says this provides a further level of comfort for buyers who will see plenty of options,"and that's helping to really cap prices."
Duncum asks if a low Kiwi dollar can save the market. Higgins says that a lower dollar can be beneficial, but the full benefits may be seen next season, rather than now.
"Yes [the low dollar] will be helpful but it won't go all the way to mitigating drops ... as we progress through the really crucial next couple of auctions."
Also in today's interview: Emma Higgins gives her thoughts on the 125th Anniversary of New Zealand women winning the right to vote and talks about her recent trip to America where she was impressed by local dairy operations and the Minnesota State Fair.