dairy cow© Tim Scrivener

World dairy prices have now risen 34% since crashing to their mid-December low.

The average price on the Global Dairy Trade auction this week jumped 10.1% to $3,336/t (£2,162/t), after similar growth at the previous fortnightly sale.

The fifth rise running will be cheering for dairy farmers, who have seen their milk prices plummet through links to world markets.

Skim and whole milk powder prices were particularly positive, surging 5.7% and 13.7%, respectively. Cheddar values also rose more than 16%.

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But prices still remain far short of the record highs of early 2014, with this week’s auction average still down more than one-third on the year.

And improving returns have also been helped by much tighter supplies.

The 17 February auction saw 18% less volume sold than at the previous sale.

A DairyCo report said this could be due to milk production dropping off as EU farmers try to avoid superlevy fines and dry weather reins in Australia and New Zealand’s output.

“What happens to milk supplies over the coming months will be important to whether these positive movements signal the start of a recovery in global prices,” the report said.