Fonterra has held its forecast milk payout despite hopes a lift was on the cards.
Chairman John Wilson says that although dairy commodity prices have gone up, the increase is not enough to raise the forecast.
On Thursday, it said it maintained its current forecast Farmgate Milk Price for the 2014/15 season at $NZ4.70 per kilogram of milk solids.
Along with the estimated dividend range, this amounts to a forecast cash payout of $NZ4.95 - $NZ5.05 for the current season.
Since December, prices for whole milk powder have increased 45 per cent and skim milk powder prices have increased 13 per cent.
However, there was still volatility in international prices, New Zealand volumes were down and there were droughts in large parts of the South Island, Mr Wilson said.
Share
