The total pay-out available to farmers in the current season, including the share dividend, is forecast to be $6.50 to $6.60 before retentions.
Fonterra Chairman John Wilson says the co-operative is confident that this forecast is at the right level, following the 75 cent rise in November.
“The global outlook for dairy remains positive. Since November, the global market for commodity dairy products has remained relatively balanced and we expect global prices to continue to hold or gradually increase over the back half of this season – a view shared by most global analysts.”
Fonterra also announced that it would increase the monthly Advance Rate it pays to farmers.
The Advance Rate for February, paid in March, has increased to $4.85/kg MS.
“Our confidence in the global dairy market at this stage of the season, combined with the strength of our Co-operative, has enabled us to increase the monthly Advance Rates more than we normally would at this time of the year.”
