Farmers have been given multi-billion dollar payout by dairy company, Fonterra. This has been done since there has been a rise in the international dairy prices.

In real terms, the payouts made for the year 2010-11 has gone up by 30c to reach at $7.30 - $7.40 per kg of milksolids. This amount is before retentions. That comes out to be a close to $9.5 billion rise in the overall money that is being distributed.

At present some 10,500 farmers are working with Fonterra. Said Andrew Ferrier, the CEO that on a general level the international dairy prices have shot up and the good thing is that the rise is much higher than what the firm had expected before its opening forecast in May.

Besides this, the Kiwi dollar is stronger than before. Earlier the fall in value of the currency was eroding value for the farmers.

He also said that the online auction of the company had given solid results with the average prices going up by 1.5 per cent. This is further boosting their confidence.

The new forecast is that milk price will be $6.90 per kg of milksolids.