Fonterra reported yesterday the average price paid at its fortnightly globalDairyTrade internet auction was $6434 (US$4826), which pushed the trade weighted index up by 5.9% on the previous sale.
This followed rises of 3.9% and 7.2% in the previous two auctions.
Information supplied by Fonterra showed the last time prices were this high was between March 2007 and March 2008.
Such has been public anger at the speed with which dairy prices have increased in recent months, Fonterra last month announced it was holding all domestic price rises until the end of the year.
Soaring international demand for dairy products has pushed up prices, as China proves to have an insatiable appetite.
In December, New Zealand exported 100,000 tonnes of dairy product, of which 50,000 tonnes went to China.
Economists have this week also identified poor stock feed crops and competition for grain from ethanol producers in the United States, and rising oil prices expected to feed demand from producer countries, as factors underpinning demand.
Supply has not kept pace.
Global dairy production was last year expected to grow by 2% but it grew only 1.8%.
Prices for whole milk powder at yesterday's auction grew 9.6% to an average price of $6158, skim milk powder by 2.3% to $5302, and anhydrous milk fat by 1.1% to $8565.
While prices remain strong, there appears little scope for Fonterra to lift its milk price further to farmers this season.
When the dairy co-operative last month lifted its forecast payout to farmers by 60c a kg of milk solids to a range of $7.90 to $8 a kg m/s, it pointed out that virtually all this season's production had been sold.
