WELLINGTON, July 27 (Reuters) - New Zealand's Fonterra (FCG) (FSF) on Thursday lifted its forecast milk payout for the 2017-18 season to NZ$6.75 per kilogram, as the dairy giant sounded upbeat on the outlook for the upcoming season.
The company said in a statement it had revised upward its forecast farmgate milk price by 25 cents over an original forecast of NZ$6.50 per kilogram of milksolids in May.
"We are seeing growing confidence on-farm across the country," Fonterra Chairman John Wilson said in a statement.
"With global demand for dairy strengthening, the signs are for a good start to the season for our farmers and their rural communities although following a challenging period of very wet conditions for some of our farmers."
After two years of declining prices, farmers and analysts had been concerned that a 50 percent rebound during 2016 was waning when prices were dented at the beginning of the new year due to a global supply increase.
But global dairy prices have risen in recent months, providing some reassurance.
Fonterra also announced a forecast earnings range of 45 to 55 cents per share.
