Otago dairy farmers have received some good news with Fonterra bumping up its farm-gate milk price forecast by 25c for the 2018 season to $6.75.
The co-operative also announced a forecast earnings per share range of 45c to 55c, making the forecast total available payout to farmers in the 2017-18 season $7.20 to $7.30 before retentions.
In a statement, chairman John Wilson said the revised forecast reflected the ongoing rebalancing of supply and demand in global dairy markets.
With growing confidence on farms across the country and global demand for dairy strengthening, the signs were for a good start to the season for farmers, although some had experienced a challenging period of very wet conditions, Mr Wilson said.
The increased forecast would be welcome news to farmers as they continued to invest in their businesses following an improved 2016-17 season, with the usual reminder to budget cautiously, especially in the early part of the season, he said.
Otago Daily Times