Fonterra has increased its forecast milk payout for the current 2008-09 season by 10 cents per kilogram.
Suppliers will now receive $5.20 per kilogram of milk solids.
The payout forecast has fallen twice from its original position at $7 at the start of the season.
Chairman Henry van der Heyden says the increase reflects the board's desire to do what it can to help farmer-shareholders during a very difficult year.
Mr van der Heyden says international dairy markets remain uncertain and volatile, but there are some encouraging signs of stability, such as the increase in prices for whole milk powder.
Chief executive Andrew Ferrier says this year's payout will be brought forward to June to help farmers' cashflow.
He says current concerns over swine flu shoud not affect the price of milk solids.
