NZ dairy product prices rise 1.1 per cent

PRICES of New Zealand dairy products rose in the final GlobalDairyTrade auction of the year.

The GDT-TWI Price Index rose 1.1 per cent compared to the last sale two weeks ago. The average winning price rose to $US3,311 ($NZ3,918) a metric tonne from $US3,290 ($NZ3,893) a tonne in the last auction.

Whole milk powder fell 0.6 per cent to $US3,147 ($NZ3,724) a tonne while skim milk powder gained 1.1 per cent to $US3,419 ($NZ4,045) a tonne.

Fonterra, the world's largest exporter of dairy products, raised its forecast farmgate milk payment this month and chief executive Theo Spierings said global dairy prices "are likely to move higher in the first half of 2013" given rising feed prices and unfavourable climatic conditions in the US, Ukraine, Russia, Brazil and Argentina.

The total volume sold fell to 47.195 tonnes from 52,596 tonnes two weeks ago.