World dairy prices rose 1.1% in Fonterra's latest global auction.
The average price at the auction overnight on Tuesday was $US3,311 a metric tonne.
Prices in the previous auction had fallen.
Whole milk powder fell 0.6% and anhydrous milk fat fell 0.1% but prices for rennet casein rose 6.95%.
BNZ economist Doug Steel says prices are, overall, much better than the lows experienced in May and should continue to rise next year, due to stronger demand from countries like China and shortages of supply from northern hemisphere producers.
