The dairy cooperative expected to report full year earnings in a range of 55-to-75 cents versus its previous guidance of between 40-to-60 cents per share for the year ending in July.
Chief executive Miles Hurrell said the improving outlook was alongside its previous forecast farmgate milk price of $10 per kilo of milksolids, at the midpoint of the range.
"As we have finalised preparation of our interim results, and looked at the balance of the year ahead, we are pleased to confirm an upgrade in our full year forecast earnings range," he said.
"This upgrade reflects the underlying strength of our core ingredients business and the resilience in our consumer channel, which is contributing to a robust result for businesses in the divestment perimeter.
"Our Consumer channel has shown good volume and margin growth while recovering the higher farmgate milk price this season."
Fonterra will report is first half financial result on 20 March.
