Fonterra says the surging New Zealand dollar is behind its decision to leave the forecast dairy payout unchanged.
The dairy cooperative predicts its farmer-owners will get between $7 and $7.10 per kilo of milk solids this season.
It says it had contemplated raising the payout because of robust global prices, but the surging dollar meant it was not prudent to increase the forecast at this time.
Federated Farmers' dairy spokesman, Lachlan McKenzie, says it is good news Fonterra has confidence in the marketplace that it can hold the forecast.
But he says the fast-rising New Zealand dollar will cause pressure in the long-term.
The payout is made up a milk price of $6.60 a kilo, plus a dividend of between 40 to 50 cents.
