The $1.20 increase on the 2012-13 season represented about a $2 billion boost for the economy, or about 1% of nominal GDP, with farmers potentially receiving about 0.58c per litre for milk they produce between June and May next year.
Mr Crawford, who is Otago Federated Farmers dairy chairman, described it as a ''good, solid'' forecast.
He was also pleased a higher advance rate schedule had been confirmed, with an opening rate of $5/kg of milk solids.
The past season had been varied within Otago - some farmers got rain when they needed it and managed to ''hold on OK'' while other areas, like Clydevale, where he lived, were more affected. Some did not get the production they wanted and the announcement was ''really good news'', he said.
Taieri dairy farmer Kelly Allison, who was busy yesterday morning completing the last milking for the season, described the forecast as ''excellent''.
The higher advance rate would also help with cash-flow. This season had been ''pretty tight'' until a couple of months ago.
Otago Chamber of Commerce chief executive John Christie said any increase in farm-gate prices was good for the region and for Dunedin city.
Otago's economy was dependent on the primary sector and dairying was a significant part of that.
More money in farmers' pockets usually had an impact on the rural service industry and wider.
If the increase continued in the longer term and also led to more people taking on conversions, there would be more economic flow-ons for Dunedin, in terms of increased demands from engineering firms and the construction industry, but also generally more spending in the areas where farmers were based.
Fonterra attributed the forecast to continuing strong international prices for dairy.
Chairman John Wilson said in a statement the ''general consensus'' was dairy commodity prices had peaked but would continue at, or near, current levels until the fourth quarter of 2013, while most external forecasts pointed to prices remaining ''relatively strong'' through 2014.
The high milk price forecast would not translate into higher prices for the consumer, Fonterra chief executive Theo Spierings said. Westpac economist Nathan Penny had expected a lift in the forecast milk price but said the magnitude ''comfortably exceeded'' the bank's expectations.
The announcement, combined with a forecast rebound in local production, meant the 2013-14 season was shaping up as a ''bumper season'' for the New Zealand dairy farming sector, Mr Penny said.
DairyNZ said the forecast payout would significantly boost dairy farmers' spirits after a tough season affected by the worst drought for 70 years.
Many North Island farmers had to increase their overdrafts because of the ''double whammy'' of extra feed costs and a drop in their income because less milk was produced, chief executive Dr Tim Mackle said.
The industry body calculated the average North Island farmer had to spend an extra $57,000 on feed this season because of drought. Combined with less milk production, they lost about $100,000 in farm income ''and some much more than that'', he said.
While the forecast ''sounds amazing'', Federated Farmers national dairy chairman Willy Leferink said the public needed to know it was forecast revenue and revenue was not profit. It was also subject to change.
Fonterra also confirmed it was holding its current forecast farmgate milk price for the 2012-13 season at $5.80kg ms and a forecast dividend of 32c per share, amounting to a cash payout of $6.12 for a fully shared-up farmer.
