The price of milk powder rose to the highest level since Fonterra began its online auctions in July 2008, reflecting climbing world food prices and boding well for the payout for the dairy exporter's 11,000 dairy farmers, according to the NZ Herald.
The gDT-TWI price rose 3.9%, following a 7.9% jump in the previous auction two weeks ago.
The average winning price across the various dairy products on offer was US$4,540 per metric tonne, up from US$4,246 per metric tonne at the last sale.
Fonterra chief executive Andrew Ferrier said this week that prices for whole milk powder will probably stay at least 50% above their long-term average on rising demand from emerging markets.
He told Bloomberg News that higher prices "are the new normal" and further gains are likely "before we start burning off demand."
Whole milk powder rose 7.9% across all three contracts on offer.
Skim milk powder rose 0.7% and anhydrous milk fat fell 2.4%.
The Reserve Bank expects the strength in New Zealand's primary sector will slowly filter through to the wider economy once farmers repay debt. --Source: NZ Herald.