Dairy giant Fonterra has boosted its forecast payout to farmers to record levels as international prices keep rising.
The farmers co-operative yesterday raised its forecast payout for this season by 60c to $7.90-$8 per kg of milksolids before retentions.
With milk production expected to be broadly in line with last season an $8 payout could be worth about $10.3 billion.
Chairman Sir Henry van der Heyden said the increased forecast milk price reflected strengthening international dairy prices during recent months.
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Fonterra's payout is approximately 40% more than the U.S All Milk Price for 2010. More power to them.
At exactly what point in time are U.S. dairy farmers supposed to reap the benefits of the global economy?