Fonterra Brands New Zealand has confirmed that it will reduce butter and cheese prices next month in line with international price decreases.

Fonterra Brands Managing Director Peter McClure said: "Butter and cheese prices in New Zealand increased in April, however, since then international prices have dipped and we will see these decreases flow through to consumers from next month.

"In February 2011, we announced a freeze on the wholesale price of fresh milk in New Zealand.

"At this stage there are no changes planned to fresh milk prices, but if international milk prices drop significantly we will of course flow these decreases onto consumers."