The strength of the New Zealand dollar has cost dairy farmers $1 billion in lost revenue but Fonterra says it won't be putting pressure on the government to influence the exchange rate.

Chairman Sir Henry van der Hayden says Fonterra has learned to live with the market conditions and the board has not discussed asking the government to intervene.

Chief executive Theo Spierings says the problem is not so much the strength of the New Zealand dollar, as the weakness of the US dollar. 'and we don't have any influence with Obama”.

Willy Leferink, Federated Farmers Dairy Chairperson says the high Kiwi dollar resulted in a one billion dollar opportunity-cost for Fonterra's farmer-shareholders.

'That might have some calling for the new Reserve Bank Governor's head but we cannot blame him. The dollar is being kept high by what our government is spending. It is something like $8 million every single hour so why don't we start there?”

Willy says that given the tough trading conditions, Fonterra had done well in the 2012 year.

'The farmgate milk price of $6.08 per kilogram of milksolids (kg/MS), while down on last year, is up three cents on what was forecast in May. With the dividend it means a final payout of $6.40 kg/MS and that makes it the sixth best payout in the past 20 seasons.

'The three extra cents for last season is a small but welcome bonus but the 32 cent dividend will be a little on the disappointing side for some farmer-shareholders.

'Because the payout trajectory was well telegraphed, the eyes of most farmers are on the tough season we're now in. We are staring down the barrel of $5.25.

'There is cause for some optimism as GlobalDairyTrade has strongly rebounded since the new season's start. Until Fonterra's prospectus is released due to Trading Among Farmers, there will be no further payout revision announcements. We are watching this space.

'Against this backdrop is an ugly international trading climate. We were all reminded of it this week by job losses outside of the primary industries.

'Every Kiwi ought to be grateful last summer's dismal holiday weather became a farming bonanza. Sadly, this goldilocks weather was also shared by our major competitors.

'This helps to explain why production surged 11 per cent to 620,000 metric tonnes, yet only translated into a modest two per cent increase in sales.”