RTTNews - Wednesday, New Zealand's Fonterra Co-operative Group announced an opening forecast payout for the 2009/10 season of NZ$4.55 per kilogram of milksolids or kgMS that comprises a milk price of NZ$4.1 and value return of 45 cents per kgMS.

Fonterra Chairman Henry Heyden said, We had expected dairy prices to be bouncing along the bottom at the moment, but the exchange rate has been a big negative. It has a huge influence on the Milk Price forecast when you go into the new season with a large chunk of your sales unhedged, which is always the case at this time of the year.

Regarding payout forecast for 2008/09, Heyden said it remained on track to achieve the NZ$5.20 per kgMS and anything above NZ$5.2 is likely to be retained.

For comments and feedback: contact editorial@rttnews.com