Fonterra will be reducing the price of wholesale domestic milk at the end of January, following falling international commodity prices. 

Retail milk prices are also expected to fall slightly following the decrease. 

While the co-op will not say publicly how much the price will fall by, the changes will take effect on January 30.

In February last year Fonterra froze the price of wholesale milk to New Zealanders.

Fonterra’s move comes as international milk prices have fallen substantially in the past 10 months – whole milk powder has fallen nearly 22 percent since March 2011.

At the latest Global Dairy Auction whole milk powder was selling at US$3,554 a tonne, down from US$4,573 a metric tonne in March last year.