Fonterra has left its forecast farm-gate milk price unchanged at $6 for the 2016-17 season.
When combined with the forecast earnings per share range for the 2017 financial year of 50c-60c, the total payout available to farmers is forecast to be $6.50-$6.60 before retentions.
In a statement, chairman John Wilson said the co-operative was confident the forecast was at the right level.
"The global outlook for dairy remains positive. Since November, the global market for commodity dairy products has remained relatively balanced and we expect global prices to continue to hold or gradually increase over the back half of this season, a view shared by most global analysts," Mr Wilson said.
Fonterra also announced it would increase the monthly advance rate it pays to farmers. The advance rate for February, paid in March, increased 37c to $4.85.
Earlier this month, Synlait Milk increased its forecast milk price from $6 to $6.25, chairman Graeme Milne say-ing the company believed that was now a realistic estimate for the current season. Fonterra’s February Global Dairy Update said the co-operative’s New Zealand milk collections were showing signs of recovery.
Originally expected to be down 7% for the season, the forecast had now improved to a 5% decline on last season.
