Fonterra has increased its full year forecast earnings by as much as 10 percent but has left its forecast farmgate milk price unchanged.
Fonterra chairman John Wilson Photo: AFP
The dairy co-operative says that earning will rise to between 45 and 55 cents a share, up from an earlier forecast of 40c to 50c.
The forecast price to be paid to farmers remains at $4.60 per kilo of milk solids, with an annual dividend of between 35 and 40 cents a share, boosting the total cash payout to between $4.95 and $5 a kilo.
Chair John Wilson said the increase reflected the strength of the three months ended in October.
Fonterra has also increased the rate of support payments to its farmers - going up to 25 cents in December, from the previous rate of 18 cents.
The company recently shed 750 jobs as part of a strategic review to reduce costs in the face of low global dairy prices.
