Dairy group Fonterra confident global milk prices set for sustained lift

Dairy group Fonterra has maintained its optimistic forecast milk payout to New Zealand farmers, saying it was confident that “unsustainably low” global prices would continue to improve in 2016.

The Auckland-based company says it will pay its 10,500 farmer suppliers NZ$4.60 (€2.84) a kilogram of milksolids in the current season, ending May 31.

Dairy auction prices slumped to a 12-year low in August before stabilising after Fonterra reduced the amount it sells at auction on waning milk production.