Dairy product prices have continued to follow the downward path they have been on since early last year, according to DairyCo.

It says higher milk supplies resulting from the Northern Hemisphere moving into its peak production period is keeping pressure on prices.

Furthermore, DairyCo says production in Oceania has not been as affected by the drought as previously thought, leading to higher than expected volumes available on recent GDT auctions.

It also says there has been some firmness in the US markets where domestic demand remains strong, although milk powders, which are more influenced by export markets, have been subject to lower returns.

Meanwhile, according to DairyCo import demand from the key buying nations, while increasing, has not grown at the same rate as production and remains insufficient to deal with the large volumes of product available globally.