EU dairy prices have recovered healthily since June and are crawling back towards 2008 levels, according to the latest data.

The European Commission has released figures showing raw milk prices rose from June's EUR24.2 per 100kg to EUR27.7 per 100kg this month.

The rise has improved the annual average raw milk price for 2009 to EUR28.66 per 100kg, although still significantly below the 2008 average of EUR34 for each 100kg.

A Commission report said: "Following a low point in late spring/early summer, prices for dairy products increased strongly in the third quarter of the year in the EU and on the international markets."

It predicted "more stability for butter and skimmed milk powder and growth for cheese".