Big dairy payout offset by drought

DAIRY farmers have welcomed Fonterras 40 cent increase in its payout forecast for this season, but say the benefits have been offset by the effects of a tough season.

Fonterra yesterday announced a new record forecast of $7.30 per kilo of milk solids, which would see Fonterra farmers receive an average payout of $800,000.

Rangitikei farmer Jane Nugent-OLeary said the payout increase had turned a potentially disastrous year into an average year.