According to a dairy analyst, Fonterra's expenditure estimate for next season is slated to knock $8 per kg/milk solids that is "exceptional news" for the industry.

Today, Tim Fulton from the New Zealand Farmers Weekly told NZI Business that the chat from the recent shed conferences between Fonterra and farmers robustly pointed out at a huge leap in the expenditure by the end of the
2010/11 season, with prices beginning from about $6 kilogram of milk solids (kg/MS).

Fulton says, "There has been a fairly solid sort of a nod towards that figure (of $8kg/MS) so that is exceptional news".

Fonterra Chairman, Sir Henry van der Heyden recently cautioned regarding instability in the dairy market, but has also said that cultivators should plan for milk prices "around this year's level", that was raised to 40 cents to $6.10/kgMS at the conclusion of April .

That increase sustained this season's progress of recuperating prices after the slumps of the 2008/2009 season.

Fulton says that the data is based on the advance sales that Fonterra has already committed to, which implies strong assurance in the dairy market.

Farmers Weekly reports that Fonterra's Chief Financial Officer, Jonathan Mason did not indicate how much of the next season's expected production was already constricted for sale, but he reveal that the May online sale event included sales for delivery through to January 2011.