Dairy giant Fonterra Co-operative has increased its forecast milk payout by 40c to $6.10 per kilogram of milksolids for the current 2009/10 season.
Fonterra said the increase was due to continued strength in global dairy prices, and demand growth beginning to outstrip supply.
The 2009/10 season was shaping up as the second-best on record in terms of farmer payouts, the company said.
