Another boost for the dairy sector, and the country.

LISTEN: JMIS Business Correspondent Andrew Kelleher speaks to KPMG Early Edition about the global dairy auction.

The latest global dairy auction has seen a 16.5% boost in prices.

And in a particularly good sign, the price for whole milk powder rose by 20.6%.

It's the third consecutive lift in prices in a month.

Business correspondent Andrew Kelleher said commodity prices are cyclical and undoubtedly farmers will be cheered by the numbers moving in the right direction.

"Fonterra's strategy of reducing the volumes that have been sold through the global dairy trade auction is actually working."

Kelleher said there's some concern around low volumes.

"Last year at this auction there were over 50,000 tonnes of product sold, this year there is only 36,000.