International dairy commodity prices jumped up a massive 10.1 per cent at the last Global Dairy Trade (GDT) auction, held on February 17th, compared to the average achieved only two weeks earlier.

The auction's biggest influencer WMP (whole milk powder) was up almost 14 per cent, and that came on the back of a massive 19.2 per cent rise two weeks earlier.

According to dairy industry commentator, Ian Potter: "Markets have without doubt passed the bottom and cheap dairy products are history."

Mr Potter went on: "There are two factors to consider when examining the surge in prices. Firstly, the quantities of product put forward for auction are down 35 per cent compared to those offered at the same auction in 2014. Volumes offered have reduced by 25 per cent or 80,000 tonnes during the last three months' auctions (December to February) compared to those sold a year ago.

"In addition, poor farm-gate prices in New Zealand have resulted in a significant reduction in production due to economics. Let's hope this dramatic turn-around continues. Whilst the world is still awash with milk, it looks like this market has well and truly turned."

While tightening milk supplies globally offer hope to dairy farmers, potato producers are suffering from a highly oversupplied market.

The UK potato industry saw retail sales volumes fall 8 per cent (133,000 tonnes) in 2013, but growers planted a similar area of potatoes last year, and a good growing season has led to a 5.7m-tonne crop.

The increased production coupled with declining consumption has led to a massively over-supplied market that has depressed prices to an average of £77.43/t in mid January, compared to £152.09 at the same time last year.

While supermarkets are selling potatoes for a retail price equivalent of between £500 and £1500/t, many farmers are currently receiving as little as £50/t for a crop that costs more than £150/t to grow.

Commenting on the situation, NFU Scotland's potatoes working group chairman, Russell Brown said: "There is a clear need for action to get potato supply and demand into better balance."

Mr Brown points out that more promotion of the health and nutritional benefits of eating potatoes would certainly help to do that, adding: "Better physical marketing by retailers would help too - our growers are finding too many green potatoes in plastic bags on shop shelves. That way of marketing needs to be revisited.

"Looking forward, potato growers need to know they have a market for their potatoes and are not growing speculatively - which makes them weak sellers."