28 Feb 2013

High dollar impediment to higher milk payout

6:32 am on 28 February 2013

Federated Farmers dairy chair, Willy Leferink says the high New Zealand dollar is a major constraint on Fonterra's ability to increase its milk payout.

In quarterly payment update, Fonterra has left its forecast milk price for this season unchanged at $5.50 per kg of milk solids, with a dividend of 40 - 50 cents per share.

Mr Leferink, said farmers are likely to be disappointed in that, in view of recent increases in global dairy prices.

But he says the high dollar is wiping out any increase in milk returns.