Dairy farmers will be pleased with the lift in Fonterra's milk payout forecast but hope there is more to come, says Bay of Plenty Federated Farmers dairy chairman Steve Bailey.

'We will take the 50 cents per share but would like another dollar.”

Bay of Plenty Federated Farmers dairy chairman Steve Bailey.

Steve says while the projected payout is better than last year, farmers will still struggle at these levels.

Today, Fonterra Co-operative Group Limited has announced a forecast earnings per share range for the 2017 financial year of 50 to 60 cents.

The forecast Farmgate Milk Price has been maintained at $4.25 per kilogram of milksolids (kgMS), making the total payout available to farmers in the 2016/17 season $4.75 to $4.85.

Fonterra chairman John Wilson says the solid forecast earnings per share range reflects performance improvements across the business and will be welcomed by farmers.

However, with the Farmgate Milk Price forecast remaining at $4.25 per kgMS, it is another financially challenging season for farmers.

Steve says Federated Farmers has concerns for all farmers, but in particular for young farmers and sharemilkers who will be struggling financially under the continuing low payouts.

'We hope we have reached the bottom of the cycle and now are on the way back up.

'Farmers live with volatility and there are many uncertainties with international markets which are beyond our control.”

Speaking as a dairy farmer shareholder, Steve says the fact Fonterra is a strong company is important and he takes comfort from Chief Executive Theo Spierings' statement that 'the returns from the ingredients, consumer and foodservice businesses continue to grow in-line with Fonterra's business strategy to convert more milk into higher returning products”.

As well as struggling with low financial returns, Steve says dairy farmers have faced a tough time in recent weeks with almost constant rain.

'Farmers are flat out with calving right now and attempting to protect their precious pasture, which is sodden.

'Some people think farmers farm cows, but they also farm grass and must do what they can to protect their pasture for the spring.”

This can mean standing cows off and using 'sacrifice paddocks” which become heavily pugged, while limiting the time cows are grazing, and supporting them with supplementary feed.

'Whatever is happening with the weather or payout, farmers have to look after their cows and do the best they can to prepare for the season ahead.”

Farmers also need to look after themselves, their families and watch out for their neighbours. Anyone who needs help should call Bay of Plenty Rural Support on phone 0800 787 254

Or visit the website www.bayofplenty.rural-support.org.nz/