According to the latest data available, the GlobalDairyTrade price index recorded a decline of 1.4 per cent during the previous night's auction, adding pressure on one of the key industries in New Zealand.

Experts have said that a global excess in supply of milk products has resulted in lower incomes from exports from New Zealand to the global markets.Data showed that there is some positive development in prices concerning the country as the price of New Zealand's key product, whole milk powder continued to rise gradually. The price of whole milk powder recorded a growth of 0.7 per cent at the auction.

Federated Farmers dairy spokesman Andrew Hoggard said that there are indications that the price of whole milk powder would continue to make slow recovery. This is the third time that the price of the commodity has increased and this might help give hope to farmers, whose returns are mainly based on the whole milk powder prices.

Butter and skim milk powder prices fell 5.5 per cent and -3.6 per cent respectively while whole milk powder rose to an average price of US$2176. Analysts said that the price of whole milk powder rose as the production in New Zealand was lower.