8 Feb 2017

Dairy prices up for second time this year

9:37 am on 8 February 2017

Dairy prices have risen in the global auction overnight.

The average price rose by 1.3 percent to $US3537 a tonne.

The increase is the second positive result for the year following a 0.6 percent rise at the previous auction.

The key whole milk powder price climbed 1 percent to $US3314.

This keeps prices in the break-even range for dairy farmers, who need about $US3000 a tonne.

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Graphic: Global Dairy Trade

The volume of product sold was down about 3 percent, in part because Fonterra's milk production is low for the season.

In the past year milk prices have risen early 50 percent overall, driven by an almost 70 percent increase in whole milk powder prices.