Economic impact of plunge in global dairy price

Overnight, dairy prices dropped 8.4% at the Global Dairy Trade auction. This follows a fall of almost 9% a fortnight ago. Economists believe Fonterra will further cut its payout to farmers - it currently stands at $6 per kilo of milk solids, already down from an earlier forecast of $7. Prices are now 41% lower than in February. ANZ Rural economist Con Williams, and Jacqueline Rowarth, Professor of Agribusiness at Waikato University.