Belief dairy prices could still go up, despite prices falling in the latest Global Dairy Trade auction

They've plummeted nearly seven percent -- the biggest drop in almost a year.

Skim Milk Powder's down 6.1 percent and Whole Milk Powder 4.3 percent.

Federated Farmers dairy chair Richard McIntyre says it's the first auction of the season - and prices can quickly rise.

He says it often trends downwards in winter and picks up at the start of summer.

McIntyre says dairy processors will have their own price predictions, and the real worry starts if the auctions go further down than what's been forecast by processors.