Dairy prices surged 15 percent in the latest Global Dairy Trade auction overnight, hitting a seven-year high.
The average price at the auction was US$4231 per metric tonne (MT).
The price for whole milk powder - the most important commodity for New Zealand farmers - rose a whopping 21 percent to US$4364/MT.
Prices for butter were up 13.7 percent to US$5826/MT, while anhydrous milk fat increased 7.4 percent to US$5929/MT and lactose rose 4.9 percent to US$1278/MT.
Skim milk powder was up 3.5 percent to US$3302/MT and cheddar rose 1.3 percent to US$4280/MT.
The only commodity on offer to fall in price was butter milk powder which was down 0.3 percent to US$3144/MT.
A total of 25,554 metric tonnes of product was sold at the auction.
It was the eighth consecutive auction in which prices have increased and comes after Fonterra last month lifted its forecast farmgate milk price range to $6.90 - $7.50 per kgMS, giving a midpoint range - which farmers are paid - of $7.20 per kgMS.
