Dairy product prices have soared at the latest global dairy auction, amid signs the worldwide supply glut is easing, bolstering optimism about the outlook.
LISTEN ABOVE: ASB rural economist Nathan Penny speaks to Mike HoskingÂ
Overall, prices gained 12.7%, with the all important whole milk powder price up by just under 19 percent.
AgriHQ dairy analyst Susan Kilsby said it's a stunning result and couldn't have come at a better time for our farmers.
She believes it's safe to say the market has turned a corner.
These numbers had been mostly flat since the season started in June.
ASB rural economist Nathan Penny told Mike Hosking farmers across the world had to adapt.
"The levels of production it was at was unsustainable, farmers had to change the way they were doing things both here and in Europe, and they're doing so now and it's translating to prices. That's the dairy cycle."
Penny said it's a real relief.
"The futures market was pointing to a big one, as it turns out it was even bigger than we expected."
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