Fonterra has lifted its 2015-16 forecast payout by 75 cents to $5.00 to $5.10/kgMS. The farmgate milk price increases to $4.60 and the dividend payment remains at 40 to 50c/share.

Farmgate milk price forecasts by at least two banks, ASB and BNZ, have now been hiked upwards to $5/kgMS for the 2015-16 season.

ASB has lifted its milk price forecast to $5/kgMS for the season after GlobalDairyTrade (GDT) auction prices spiked higher for the third successive lift overnight, with the lift larger than expectations.

The latest GlobalDairyTrade results showed another move in the right direction and cause for cautious optimism, but “not time to pop the champagne yet”.

Anybody watching international dairy markets knows it’s a bad time to try to move product.

The end of the tunnel is still not showing any light for farmers. Six months ago they were told to expect a bounce-back in global dairy prices about now. But last week’s Global Dairy Trade results show no sign of recovery.

Federated Farmers Dairy chairman Andrew Hoggard says this morning's Fonterra Global Dairy Trade (GDT) result is shocking.

Milk prices are volatile and difficult to predict so farmers should approach next season with caution. DairyNZ economists look at how the 2015-16 season could shape up.

Primary Industries Minister Nathan Guy says farmers are resilient and will get through the low milk-price patch.

Many Fonterra shareholders were disappointed with the interim results the co-op announced last month.  Many feel they are not seeing a return on their investment.