The Reserve Bank says the outlook for global milk prices is highly uncertain and the financial stress on the dairy industry could rise markedly if prices remain at current low levels in the 2015-16 season.

Work is complete on a new mozzarella plant at Fonterra's Clandeboye site, doubling production of the cheese and creating enough mozzarella to top more than 300 million pizzas a year.

The North Island wool auction this week remained mostly firm except for the higher volume of shorter shears, which eased, compared to last week.

Milk prices are volatile and difficult to predict so farmers should approach next season with caution. DairyNZ economists look at how the 2015-16 season could shape up.

South Australian dairy farmers have begun exporting fresh milk to China.

Primary Industries Minister Nathan Guy says farmers are resilient and will get through the low milk-price patch.

A weaker New Zealand dollar, limited wool volumes and renewed client interest, combined to lift local prices across the board says NZWSI general manager, John Dawson.

Lamb wool has been the ‘rock star’ this season, with values about $1 above last year, according to Wool Services International’s Malcolm Ching.

Despite last week’s drop in this season’s expected milk payout by both Fonterra and Westland there are positive – albeit slow – signs about the future outlook for dairy prices.

The latest wool auction of 4,700 bales from the North Island saw mixed price movements with a generally steady market overall.