Growing demand has led to rising dairy commodity prices this month, New Zealand dairy giant Fonterra said today (4 March).

The March trading event for Fonterra's internet-based sales platform, globalDairyTrade, saw prices rise 16.6% from last month, the company said.

The trading manager, CRA International, advised Fonterra that the average price achieved across all products and contract periods for whole milk powder was US$2,158 per tonne FAS. Prices ranged from US$2,100 per tonne FAS to US$2,280 per tonne FAS.

"The globalDairyTrade result reflects what customers believe is a fair price in today's uncertain market," said Kelvin Wickham, Fonterra's managing director of global trade.

"This latest result is another indicator of what are seeing in the market. We expect prices to move around in this transition period as supply and demand rebalances."