A lift in the forecast milk price has delighted Northland dairy farmers who are cautiously optimistic the final payout stays above $6 per kilogram of milk solids.

Fonterra yesterday increased its 2019/20 forecast farmgate milk price from $6.25 to $7.25 per kgMS to between $6.55 and $7.55 as the dairy giant has been achieving good prices so far this season.

Fonterra said its ability to see its whole milk powder at higher prices than European Union and United States dairy companies in Global Dairy Trade events, coupled with a decrease in global production, have helped the company's financial position.

Northland farmer Dave Robinson is pleased to hear the payout price