Global milk prices rising

Dairy prices increased by 4.6 per cent at the global auction overnight to hit an eight-year-high as tight milk supply stokes demand.

The Global Dairy Trade price index rose to 1397, its highest level since March 2014.

The average price for whole milk powder, which has the most impact on n what farmers are paid, posted the biggest gain, up by 5.6 per cent to $4,082 US. per tonne, and is 21 per cent higher than at the same time last year.

It has a minor beneficial impact on Canadian dairies which export relatively small volumes of skim milk powder.