Fonterra is holding its forecast payout at $5.70 with an expected dividend of 20-30 cents.
If the actual return is as good as forecast it will be the second highest suppliers have received.
Last season the company revised its forecast downwards which was difficult for farmers who had budgeted on receiving more. The company must be confident it can deliver the higher forecast payout this year.
Dairy conversions are continuing in the South Island and this interim report from Fonterra may well encourage more farmers to shift from sheep and beef.
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