Dairy giant Fonterra says firm demand is behind a rise in whole milk powder prices for the second successive month.
The co-operative says the average price across all products and contract periods rose to $US2,235 per tonne, an increase of 3.5% on last month's auction on the company's online Global Dairy Trade system.
It is only the second successive price increase since the internet-based system was introduced last July.
Fonterra says the higher prices are encouraging, despite the economic downturn.
Managing director of global trade Kelvin Wickham says the firmer prices indicate supply and demand for whole milk powder are returning to sustainable levels.
However the global industry is yet to see a return to consumers buying dairy products from their supermarkets at previous levels, he says.