While Fonterra's profits may have fallen significantly a dairy industry spokesperson says farmers are still celebrating what's likely to be a once in a lifetime payout.
For an average Fonterra shareholder, it will equate to a gross milk payout of about $1.2 millon.
Fonterra announced its interim reults for the six months ending January this week - and its profit, at $217 million was down more than 50 per cent on the same period last year.
But it confirmed the farmgate milk price it will pay farmers remained on target to hit a record $8.65 per kilo of milk solids with a 10 cent dividend on top of that.
And Federated Farmers dairy chairman Willy Leferink says that's what matters most.
"I don't think we've ever seen this sort of revenue coming towards us ever it's unprecedented and probably a once in a lifetime experience....it's a fantastic result."
But Mr Leferink says farmers will be putting questions to Fonterra's management about it's fall in profit and whether the co-operative is lacking the necessary infrastructure.
An agribusiness professor says farmers are understandably nervous about Fonterra's milk payout later in the year after the company announced its half-year profit has slumped by more than half because of high raw material costs.
Fonterra says it's still on track to make a record payout to farmer shareholders of $8.65 per kilogram of milk solids, along with a 10 cent dividend, making a cash payout of $8.75.
Good news
Professor of Agribusiness at Waikato University, Jacqueline Rowarth, says farmers are under pressure because they are facing increases in the cost of production and compliance.
However, she says it's good news that the company is still holding to its payout forecast.
"While it is great for farmers, a forecast payout is just a forecast and not necessarily reality, we will find out in October."
Professor Rowarth says Fonterra must be under a lot of pressure to hold the payout forecast to the highest it's ever been.
"We have a lot more small dairy companies starting up, so suppliers are making up their minds who they will supply to and Fonterra needs to keep the high payout to maintain its supply base."
