Fonterra has informed that it would start the procedure of reviewing its forecast milk payouts that will go out to the farmers, following the fall in prices, which were seen at its most recent online dairy auction episode.

New Zealand's largest exporter is intimidated by the fourth successive month of price falls, which may handicap the recuperation phase that had been helped by the increase, which was seen in the exports.

The standard sales price for almost all the products plunged by 8.3%, as seen early on Wednesday, arriving at $US3080 ton. The drops that were witnessed prior to this occasion were in July, with 14% drop, 3.5% in June, and in May, the dropping level was 1%.

There was a 7% price fall seen in whole milk powder to $US2974 per ton. Regardless of the plunges, dairy prices were at a higher plane at 29.7% in this year in contrast to the ones seen in the previous year.

The firm stated that it would review the payout for the existing phase, taking into consideration, the falls and the hikes in the NZ Dollar.

In May, the Dollar traded at US68c.

Agri-Fax, Agricultural analyst slashed its forecast lower than Fonterra's NZ6.60 cents per kilo of milk solids to $6.10.