Fonterra confirms it will pay a further 10 cents per share of its previously announced 2015/16 forecast dividend of 40 cents per share.

The co-operative already brought forward an earlier dividend payment during the last financial year in an effort to deliver as much cash as quickly as possible to its farmers.

Fonterra chairman John Wilson. Photo: Fonterra

Making the announcement yesterday, Fonterra chairman John Wilson says the co-op always intended to declare a further dividend in August, but it's subject to financial performance supporting the forecast earnings per share range of 45 to 55 cents.

John says they're seeing early signs of the expected recovery in dairy prices but know conditions on farms are challenging.

'It's pleasing to see the business continue its strong performance by delivering on strategy. The relative strength of our balance sheet has enabled us to support farmers during a time where there is great pressure on our farming families.

'There is no change to our forecast earnings range or our forecast total dividend of 40 cents per share for the 2016 financial year. We will confirm our end of season Farmgate Milk Price and total payout as part of our Annual Results announcement on September 22.”

Chief executive Theo Spierings says the business is continually transforming the way it works to deliver its strategy and stay ahead of the competition.

'We have confidence in the long-term fundamentals of dairy and we remain focused on securing the best possible returns for our farmers by converting their milk into high-value products for consumers around the world.”

Fonterra Shareholders' Fund unit holders will receive a distribution payment of 10 cents per unit.

The record date for the early payment of the dividend and distribution is September 1, and the payment date is September 9.

The co-operative and Fonterra Shareholders' Fund will continue to offer dividend and distribution reinvestment plans, the strike price at which shares/units are issued incorporating a discount of 2.5 per cent.

Eligible shareholders and unit holders who want to participate for this dividend and distribution need to submit a notice of participation by September 2.

Fonterra chief executive Theo Spierings.