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Fonterra raises milk-price forecasts after reporting large profit

FXStreet (Mumbai) - Some relief came for New Zealand's embattled dairy industry on Thursday after Fonterra revised its payout forecast for the current season, following the release of company results which showed a large rise in profits just days after announcing further job cuts.

The dairy giant raised its milk-price forecast to $4.60 this season from its previous estimate of $3.85 per kilogram of milk solids. Last season farmers earned $5.25, and in the 2013/14 season earned a record $8.40.

Fonterra's raised milk payout forecast came as the company announced an annual net profit of $506 million for the year ended July 31, up 183% on last year.

Fonterra CEO Theo Spierings noted, the large jump in profit comes despite the dairy industry experiencing "one of the most difficult" seasons for the global dairy market.

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