The dairy downturn is resulting in a quarterly fall of the producer price index.

Statistics New Zealand's latest data shows the index fell slightly in the June quarter.

That's being attributed to lower farm-gate milk prices.

Dairy cattle farming is down 5.5%(five point five percent).

And dairy product manufacturing has fallen almost as much.

Prices for electricity and gas supply have also dropped.

The reduction is influenced by higher lake levels and low wholesale spot prices.