The price lift of 20 cents per kilogram of protein and eight cents per kilogram of butterfat will apply to all Victorian and Tasmanian suppliers, backdated to the start of the season. It will be paid on November 15.

Heather Stacy, general manager of milk supply, said Fonterra was conscious of the pressures on suppliers this season with rising input costs and variable seasonal conditions, particularly in Victoria.

“We brought our review forward to ensure we were able to get cash out to our suppliers as quickly as possible,” Ms Stacy said.

“Average prices for dairy commodities on the international market have been improving in recent weeks, which is great to see.”

She said Fonterra was using its growing milk supply volumes to focus on high-value product categories in both domestic and international markets.

The company has revised its full-year price forecast to between $4.80 and $5.00 per kilogram milk solids.