Morrison said Westland was starting to see some payback on the capital investments made in its nutrition and UHT capacity over the last few years.
Westland has traditionally produced butter for export and in large packs for commercial sale in New Zealand but in 2016 it started selling consumer sized packs to New Zealand supermarkets.
Morrison said "Westgold" was out-selling all other gourmet butters in New Zealand combined, and was starting to reach sale levels comparative with more established brands.
Other factors influencing the increased payout prediction for 2018-19 included evidence that butter would also continue to be a good export earner.
Butter last traded on the GlobalDairyTrade platform at US$5787 a tonne, not far off last September's record of US$6026.
In its latest milk price update, Synlait managing director and chief executive John Penno said its opening forecast for 2018/19 was based on milk fat prices remaining firm throughout the season.
"We're positive about next season but, like us, farmers should remain cautious because small changes in market dynamics can have a major influence on milk price," Penno said.
-- Staff Reporter