7 Oct 2009

Online dairy auction prices rise

7:44 am on 7 October 2009

The latest monthly online auction by Fonterra has shown another rise in dairy prices, though the pace of increase has slowed.

The company says the average selling price for whole milk powder rose 6% on Tuesday to $US3,022 per metric tonne.

Fonterra says it expected price increases to moderate after sharp rises in previous auctions, but it notes demand remains robust, while supplies are tight for most dairy products.

Last month, Fonterra raised its forecast payout to farmers by 12%to $5.10 per kg this season.