Shares in Fonterra Shareholders Fund rose 40 cents on Wednesday after the company lifted its half year profit, and its forecast payout to its farmers.
Fonterra made $459 million in the six months to the end of January, an increase of a third compared with the same period a year earlier.
The recovery in global dairy prices has also prompted Fonterra to lift the forecast payout to $6.12 per kilogram of milk solids.
Fonterra chief executive Theo Spierings says a strong rise in milk volumes drove the profit higher.
"We see 6% more milk from farmers, 8% more sales volume, New Zealand milk has done extremely well both from a market perspective, but also operationally very, very strong."
Fonterra Shareholders Fund shares rose nearly 6% to $7.45 on Wednesday.