Fonterra has had a busy week posting its interim results which included a $348 million bottom line loss.

Fonterra Farm Source Regional Head for the Waikato Paul Grave spoke to The Country Early Edition's Andy Thompson saying it's not all bad news for farmers.

"Despite some challenges both on and off farm I think the business has reported a good first half result with some solid expectations for the second half."

Grave thinks farmers will be pleased with an increase in the forecast farmgate milk price from $6.40 to $6.55/kg and a payout of $6.80 to $6.90 which is "well above the break even point for most people."

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Farmers are understandably frustrated with the Danone arbitration and Beingmate partnership affecting the interim results says Grave.

"We acknowledge that that's an unacceptable performance on Beingmate but I can assure you that there's a subcommittee of the board and CEO and senior management team have it as their number one priority."

Beingmate is also a "small part of the picture of a very, very important market...we're confident we can get some sort of turn around and have put a lot of effort into ensuring that happens."

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