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Dairy product prices rose 3.2% at this week's Global Dairy Trade auction, the fifth consecutive rise in prices this year.
Skim milk powder (SMP) prices were up 1%, with an average price of US$1,998/t while the whole milk powder (WMP) index was up 1.3%, with an average price of US$3,312/t.
The main mover at this week's auction was butter, with prices up 11.2% and an average price of US$5,479/t.
The only product that saw a decrease in price was rennet casein, which was down 3.7% at an average price of US$6,259/t.
Three years of stable milk prices – Fonterra
Meanwhile, the world's largest dairy exporter, Fonterra, has forecast a three-year period of solid milk prices for farmers.
After the slump in WMP prices to $1,590/t (€1,447/t) in August 2015, Fonterra foresees relatively stable milk prices for the next three years.
Theo Spierings, CEO of Fonterra, said: “if there are no drastic changes around the world – borders closing or massive geopolitical issues – I think we will have two, possibly even three years of relative stability of milk prices.
“I always look at WMP because that’s the most important for us, and that is around $3,000/t (€2,730/t), which is up from $2,176/t a year ago,” Spierings told The Edge in Malaysia.
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