Another lift in the forecast milk price for next year will generate an additional $22.5 million into Northland's economy but the region's dairy farmers aren't celebrating yet.
Fonterra this week increased the forecast price by 25 cents to $6.75 per kilogram of milk solids which the company said reflected the ongoing rebalancing of supply and demand in global dairy markets.
If the final payout for next season announced at the end of the year is $6.75/kgMS, Northland dairy farmers will receive $607.5m based on the 90 million kg of milk solids they supply to Fonterra each year.
A payout of $6.50/kgMS will rake in $585m.
Federated Farmers of New Zealand Northland dairy chairman, Ashley Cullen, said the latest forecast payout figure looked good on paper until it was paid out.