10 Nov 2009

Rural firms expect benefit from Fonterra payout

6:14 am on 10 November 2009

Rural service firms expect to benefit from the big lift in Fonterra's forecast dairy payout.

The dairy co-operative's new forecast payout figure of $6.05 per kilogram of milk solids, announced late Sunday, is up 95 cents on the September forecast, following a surge in international dairy commodity prices.

The manager of the Hawera branch of Farmlands, Ian Robinson, says farmers will be using some money to reduce debt, but some will also be spent on farms, which means more business for rural service firms like his.

In South Canterbury, the manager of RD1 in Temuka, Becky Latter, says farmers are also expected to spend on fertiliser and stock feed as they work to increase milk yields, so they can benefit from the higher prices.