The tough New Zealand dollar has pushed Fonterra to grasp its prediction payout for the 2010/11 season at $6.60 a kg of milk solids as the elevated kiwi handles the effect of rigid commodity costs.

Fonterra chairman Sir Henry van der Heyden expressed that there dairy market costs were gripping it nicely than initially thought, guiding the board to consider an rise in the forecast milk price.

Though, the current force of the New Zealand dollar in opposition to the US dollar signifies that it was not sensible to raise the forecast at this period.

Even as the prediction was unaffected, the board has enlarged the advance rate schedule, the amount of the milk cost that is paid before to the farmers at the time of the season by monthly milk cheques.

The advance for the coming payment in November is at present is $4.60 a kg of milk solids, increasing by$4.30 a kg of milk solids in the preceding schedule.