Listen: How two summers have affected dairy product prices

Dairy product prices gained at the Global Dairy Trade auction, as stronger demand pushed prices higher for the fourth straight auction.

The GDT price index rose 4.2 per cent, whole milk powder advanced 3 per cent and skim milk powder jumped 10.3 per cent.

Although this positive result was in line with futures market predictions, Fonterra's interim chief executive Miles Hurrell said it was "ahead of what we were expecting."

Hurrell told The Country's Jamie Mackay there were a few factors which contributed to the result, including support from China and a hot European summer which has slowed down milk volume there.

"The Europeans were holding a lot of skim milk powder stock and most of that's been exhausted now so you're starting to see that play out with a shortage of supply throughout the world."

Back home, the hot New Zealand summer has not affected Fonterra's milk volume forecast so far, but "this is when things can turn very quickly if we don't see rain," said Hurrell.

"Our forecast at the moment is still 3 per cent up and we'll just watch that very closely over the next three to four weeks."

Hurrell remained coy when asked by Mackay if he will be changing from Fonterra's interim chief executive to taking up the role full time.

"That's a question you can put to the board ... let's not get ahead of ourselves."

Also in today's interview: Hurrell talks about Fonterra's share price and continues to deflect Mackay's enquiries about his potential job title change.