Fonterra’s Global Dairy Trade Prices continue from strength to strength, reaching a new record high on Wednesday night.

On average, prices across all products rose 6% to an all time record of more than US$4,800 per tonne.

Whole Milk Powder was the biggest mover of the auction, surging more than 10%, while skim and AMF contracts also recorded gains.

Fonterra’s Global Dairy Trade Manager Paul Grave says the strength in the market could be down to several factors, but the main driver for demand is Asia.

“As prices get to a certain level you’ll see demand burning off, but we’re not seeing that at the moment.

“We’re seeing huge demand from Asian markets, a lot of the developing world and it doesn’t look like that’s going to slow down.

“Good news, yes.”

Mr Grave says the strong interest in all contracts is very encouraging for both Fonterra and its shareholders.

Despite this news, the Kiwi dollar lost ground on Wednesday, falling to 75.02 US cents at the close of trading.