Dairy market boosted by 15% rise in Fonterra auction

RENEWED firmness in the global dairy market was suggested by last week’s 15.7% price rebound in the Fonterra trade auction, after two successive monthly declines.

The recovery was attributed by some experts to rising grain prices, which are closely linked to global prices for dairy products.

Meanwhile, the severe earthquake in the Canterbury region of New Zealand, which accounts for around 12% of New Zealand’s milk production, had little effect on the dairy industry.