Fonterra Co-operative Group has announced a revised forecast payout for the 2008/09 season of NZ$5.20 per kilogramme of milk solids (kgMS), up 10 cents from the previous forecast in January.

The NZ$5.20 per kgMS forecast comprises a Milk Price of NZ$4.75 per kgMS, up 10 cents, and an unchanged Value Return forecast of 45 cents per kgMS. The advance rate to farmers will be increased by 10c from the June payment.

Fonterra Chairman, Henry van der Heyden, said the move reflected the Board's desire to do what it could to assist farmer-shareholders during a very difficult year of sharply lower commodity prices. 

''Although international dairy markets remain uncertain and volatile, some encouraging signs of more stability have been emerging in recent months. Powder prices on our global DairyTrade platform have increased and our global sales team has made good progress in selling product at these improved prices. As a result, we now have the cautious optimism necessary to signal a modest but welcome increase in payout,'' said the Chairman.

Mr van der Heyden said farmers should expect some level of retentions if the amount available for payout exceeds NZ$5.20.

US$1 = NZ$1.80145 (Apr 28)