Fonterra has responded to the continuing lift in international dairy prices by boosting its forecast milk payout to farmers by a further 60 cents a kilo of milk solids.
That puts the dairy co-operative's payout $1.40 above last season's milk price of $6.10 per kilo of milk solids.
With share dividends added, it would give farmers a total of $7.75 to $7.80 a kilo for the season.
In terms of cash payments, that would top Fonterra's previous best of $7.66, three years ago.
Fonterra chairman Sir Henry van der Heyden says the increase is a consequence of strengthening market prices.
Federated Farmers' dairy chair, Lachlan McKenzie, says the forecast payout increase was a little more than farmers were expecting.