The processor says that prices are expected to stabilise or rise slightly in February as a result of the upward price trend of foil cheeses, milk powders and butter, with the weak euro aiding European exports.

The drought in Australia and New Zealand will also have an impact on worldwide demand and supply of milk.

The dairy market received a boost yesterday with the overall product price index at the Global Dairy Trade event reaching 9.4%. It was the fourth consecutive price rise at the auction.

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Boost for dairy markets as GDT auction jumps 9.4%