Dairy prices crashed overnight to a four-year low, with prices falling 7.4 percent to an average price of US$2875 per tonne.
The price of wholemilk powder - which is the most influential on Fonterra's farmgate price - fell 10.9 percent.
ANZ rural economist, Susan Kilsby, said the drop is disappointing but not surprising.
She doesn't expect to see a major improvement in prices until 2024.
Kilsby spoke to Corin Dann.
